{"id":30363,"date":"2009-07-22T00:00:00","date_gmt":"2009-07-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vijaya-bank-a-body-corporate-vs-ms-sukhi-decors-pvt-ltd-on-22-july-2009"},"modified":"2017-05-21T18:40:58","modified_gmt":"2017-05-21T13:10:58","slug":"vijaya-bank-a-body-corporate-vs-ms-sukhi-decors-pvt-ltd-on-22-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vijaya-bank-a-body-corporate-vs-ms-sukhi-decors-pvt-ltd-on-22-july-2009","title":{"rendered":"Vijaya Bank (A Body Corporate &#8230; vs M\/S Sukhi Decors Pvt Ltd on 22 July, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Karnataka High Court<\/div>\n<div class=\"doc_title\">Vijaya Bank (A Body Corporate &#8230; vs M\/S Sukhi Decors Pvt Ltd on 22 July, 2009<\/div>\n<div class=\"doc_author\">Author: N.Kumar And Gowda<\/div>\n<pre>-1-\n\nIN THE HIEH comm\" or KARNATA KA A3\" 2AN6ALo:22\nomen THIS we 22% my OF JULY, . \nPRESENT  V  K E V\nTHE HCZNBLE    \nAND.' \u00e9     '   %\nTHE :-to:xr3a.E MR.JL}5TICEg\u00a7J{E\u00a7\u00a7\u00a7U\ufb01\u00a7{\u00a7P--#\u00e9LV;\u00a7 g\u00e9iawoa\n;2,F,A. \u00a7JC+,s3'S\/aim \n;:s;::*1'w:&lt;:e;N:     1   \n\n(A bo\u00e9}? cc\u00e9rpoxiate &lt;:\u20ac\u00a7):1:i' 3:5 kirajaches-~::-\u00a35 'Gand1:1i Bazaar\n\n ' Rep.1\u00bb;_y' its GPA imlder and\n ';}s'\u00a3a1;ag;\u00e9;:.'i\ufb01\/E.;*X.\u00a7'oonac3na .. APPELLANT\n\n    Decors Pvt. Ltd.\n\n' Ba\ufb01gai\u00e9re -4 \" \u00ab \n\n{By'~S:ri ,i;s.'i*A:;t;\u00a7t;etty, Adv.,}\n\nE Reg.{)f\u00a3icc # IE3 Haudin Road\n7 Bangaicre-42\n\nR313. by its Directcm \u00bb\n\\;\u00bb\/\n\n \n\n\n\n2, Udayamini Biiergde\nW7 0. B. 8. Fiegde\nMajor, # 166, 3\"' Cross\nHanumant Nagar   ..\nBat1ga}0re-- 3.9 I\n\n3. Santhosh, iztkiegde\nS\/a.B.B.Hcgde\n34 years\nDimctor   V\nM] s.S11khi Decors  Ltd. \"  j'\n#15, Haudin Road\"-.  _   j\nBaI1gaIort:~4i2. T  \"\n4. C.A.Sa.kthrid_ \" _\nBangalgr\u00e9r.-\u00ab=32 '  ' . \n5. 1:'._.1:s.Hcg'ci?e_--v     . _'\nSf.0.;*3;na11thy_jL*;3\u20ac S}:!,efty \" __\nMagm'#:5\u00e9s,_3ui'Crc\u00a7m\"'\u00ab \"\nHantnzgaxzt Nagaii \" '  \n, B.a1:1gal\u00e9rt:~1'9 = '- .. \u00a7ESF'ONDENTS\n\n  is \ufb01led under Order 4} Rule 1 r\/W. Section\n9:'; efV__fE}1\u00bb'f3.f\"against the judgment and decree dated 28.5.2001\npa3S:':d i-in (.}.8.P~i0.142'7\/2996 by the\" mix Aciditjonal City\n\n AA Civ\ufb02 Judge, Bangalore, partly decreeing the suit \ufb01led by the\n ._ Vaipfje\ufb02antj piaintiff for money as against\n\n\\a\/\"\n\n \n\n\n\n  its registemd o\ufb01icc at New Timber\n  \ufb01angajore. Defezidanis 2 to .3 are\n\n _ the  of the first defenda.nt-c0mpan3:. 4th\n\n.1 , H  was the Director of the company and h\u00e9\n\n.'.'T&amp;'_.r\u00e9s\u00a7 g1i\u00e9d \ufb01am the Directsrshig of the coI:z1pan\u00a7: in the\n\nxwespondent\/de\ufb01andani No.1 and dismissing the  as\n\nagainst respondents] defendants 2 ts 5-V<\/pre>\n<p>&#8216;i\u00b0&#8217;h;is \u00a3\u20acl*&#8217;A coming on for heax\ufb01jg, tnis.day UL, &#8221; &#8221;<\/p>\n<p>deiivered the followi::1g:&#8211;\n<\/p>\n<p>J\ufb01\ufb01\ufb01\ufb01\ufb01\ufb01\ufb01<br \/>\nThis is the  ~-agg\u00e9inst the judgment<br \/>\nand decree of t\u00a3j1_e:  the suit of the<\/p>\n<p>piaiI1tiff agai:3_i:s4.t\u00ab\u00a7;\u00a7&#8217;\u00a3i\u00e9f_7\u20ac:I1E\u00a3saI&#8217;it:SV. 2 1495, \u00e9wsbanea by time.<\/p>\n<p>2._v&#8221;1&lt;&#039;or_tj;me  c\u00e9\ufb01v\u00e9r\ufb01ence, the parties are<br \/>\nreferz&#039;e\ufb01;t;c$ as&#039;th\u00e9\u00a75:\u00bb3.re v3&quot;T \u20ac f:3&#8211;I\u00a7&#039;IT3d to in the: orig&quot;1:1a\u00a3 suit.<\/p>\n<p>_;3; ,&#039;i&#039;hei  dezfendant is a Private Lixllited<\/p>\n<p>nleeting of Board Oi? mrectors heid 911 12.3.1990. <\/p>\n<p>defendant is the guarantor of the first   _,_ A&#039; <\/p>\n<p>company in respect of the a\u00e9vanee\/f&#039;aei\u00a3ity__ .:s..veIi}ed&#039;&#8211;t.:::b}z<\/p>\n<p>the company. 5th defendant is alse    A ;_e .&#039;<\/p>\n<p>the first defendant in respect 01&#039; tile tidxteinee<br \/>\nthe first (1\u20acf\u20acI&quot;1d8Ilt-C0\ufb02}p81&quot;1y   &#039;\u00a7ee}t1K.&#039;:Vf;&#039;\u00a7\\;1e<br \/>\nsecond defendant on   \ufb01eiendent and<br \/>\nalso her behali&#039; along requested<\/p>\n<p> Loan Cash<\/p>\n<p>the piaimi\ufb01z<br \/>\nCredit) faeiitty iet   working Capital<br \/>\nrequiremeiet K  &#039;:~V.f;;i:&#039;st&#039;&quot;..tiei&quot;e1&#039;1c.\u00a7ant&#8211;compa3:1y for the<br \/>\npurpeee of  plastic furr1iture<\/p>\n<p>of the fi&quot;1f:_\u00a7j=,\u00a7&#039;:}:1&#039;ef&#039;ende2*:1~.1*&#8230;.V::&#039;l&#039;h3e \u00a30.31) was sanctioned. in this<\/p>\n<p>  defendant executed on demand<br \/>\n   \ufb01ettetter of uxzdertaking. an agreemezit<br \/>\n  OLCC an hypothecatien of movable<br \/>\n  62.7. 198?&#039; in faveur of the piaixlti\ufb01ibank,<\/p>\n<p> ._g12e;&#039;e&#039;;}teeiI2g the repayment ofthe advance made to the<\/p>\n<p>T<\/p>\n<p><span class=\"hidden_text\">-5-<\/span><\/p>\n<p>first defendant&#8211;compa1}y to the extent of i~\u00a3s.i3,:&#8221;i(),4{,}.Qi-J&#8221;_\/&#8217;&gt;r,_<\/p>\n<p>{)1} 13.1990, the third defendant is app0i_iH1&#8217;te\u20ac\u00a7_&#8217; _<\/p>\n<p>Additional i)irec&#8217;\u00a3or of the c0mpanyV.&gt;AA&gt;VAfter.acijvtiS;:i1\u00e9g the  <\/p>\n<p>amounts paid by the defendants, :&#8217;\u00a3he\u00a7f&#8221;a:\u00a3:e  &#8216;If<\/p>\n<p>pay a sum of 1&lt;s.9,e9,512e.e&#039;;-3.  the&quot;<\/p>\n<p>statement of aceounfs in %&#039;;4ei0 :gea:V,VNo\u00a7S;e?Lf  The<br \/>\ndefendants did not    in spite of<br \/>\nrepeated requestse\u00e9md   &#039;iiable to pay<br \/>\nthe interest at   compoundame<br \/>\nquar{erly_    ::,V.715t3\u00bbEerefore, the plaintiff<br \/>\nfiled a s\ufb01it for  15 together with<\/p>\n<p>interest at tBe_r&#039;ate 0f 4V2.};:3:S&quot;;\/o p.a. and for a direction to<\/p>\n<p>.se1\u00a3  iyxjmevaginle A praperties which are hypothecated<\/p>\n<p> seczmiy for  _aforesa.id loan amount.<\/p>\n<p>4&#8230; After. \u00e9senriee of summons, defendants 1, 2, 3<\/p>\n<p>&#8221; &#8221; &#8216;T 5;%f1ie\u20aci&#8212;{vritten statement. They coniende\u00e9 that the<\/p>\n<p>is  by time. The suit is aiso bad for nan\u00bb-<\/p>\n<p>ljjijemcier of necessary parties. &#8216;I&#8217;hey contended that the<\/p>\n<p>defendants are stiil due in any amount, they majfhe<\/p>\n<p>permitted to pay the decretal amount in A&#8217; <\/p>\n<p>instaixnent of i&lt;Is.5&#039;,()U()\/ -.<\/p>\n<p>E2. on the aforesaici pie3.di1.9ig:s,:1.&#8211;&#039;_A_T\u00a5ilr;\u20ac-3  <\/p>\n<p>framed the Ib\ufb02owing five iSS&#039;:1es:_\u00a7<\/p>\n<p>1. Wheth\u20acr,1&#8217;h.;\u00a2 pla&#8217;ejiitii;f&#8217; pr\u00e9if\u00e9s the<br \/>\nborr0wi:1g &#8221;  \u00a7:&#8221;&#8216;     on the<br \/>\nguarantee &#8220;0&#8217;i&#8217;- the  &#8221;  4 and<\/p>\n<p> \u00e9     Vthc&#8217;: piaint as<\/p>\n<p>   &#8221;  V&#8217;<\/p>\n<p> ;\u00a7:ajnti:1&#8242;:oan;: is entitled<br \/>\n  rV\u00e9&lt;;-&#039;._&#039;0\\Ar.:*;:&quot; vtf\ufb01e compound ixlterest at<\/p>\n<p>tf51\u20ac3v&#8211;I;\u00a7t\u20ac \ufb01harged and ciaimeci?<\/p>\n<p>.:V&quot;-\ufb01izetfler the suit is i3aI&#039;red by<\/p>\n<p> &#039;  \ufb01g\ufb01imtion?\n<\/p>\n<p>&#8221; ..  Whether the suit is not maintainabie<\/p>\n<p>as contended?\n<\/p>\n<p><span class=\"hidden_text\">-3-<\/span><\/p>\n<p>5. Whether the defendants are joi;:1tly ~&#8212;_,<br \/>\nand sev\u00e9ra\ufb02y \ufb01able to pay the su_it.:<br \/>\nclaim?  9&#8242;<\/p>\n<p>7. In support of their CJ.3.i.IP;.&#8217;,&#8221;&#8221;th\u00a2<br \/>\nexamined three witnesses as  7.:\n<\/p>\n<p>22 documents which are<br \/>\nbehalf 9:&#8217; the defez1dants,.zthe  \u20ac.1&#8217;V\u00a2ft\u00a7i&#8217;\u00a3\u20aciaI1t&#8221;iS&#8221;{3}:3i:niI1\u20ac:d<br \/>\nas DW 1 and they got  ti7;E:;:&#8217;ci(\u00a7g\u00a7:{:ir3,:(\u00e911j:s as h3x.1)}<\/p>\n<p>to D4.\n<\/p>\n<p>8.  &#8220;0n&#8217;&#8211;.a\u00a7prec:i\u00e9tion of the aforesaid<br \/>\nOra} a1}dV&#8221;\u00e9Qo\u00a3:u1T1&lt;3iit.?\u00a7iIry &#039;c31;fi\u20ac:&#039;.\u00a7;i&quot;;::e on record categorically<\/p>\n<p>held that  %deft::fI:d\u00e9.*ji&#039;ts~&#8211;&quot;&#039;\u00bbLVhave executed a\ufb02 the suit<\/p>\n<p>&quot;  and th\u00e9&#039;agreemez1ts. it further held that the<\/p>\n<p>ge\u00a2a;1j%a: on behalf of the first defendant has<\/p>\n<p>   exe\u00e9u\u00e9\u00e9d _ ;ac1mowiedgemem: of liability dated<\/p>\n<p>&#8211;.  199{}V__\u20ac3nd therefore in so far as the first defendant<\/p>\n<p>  V'&lt;j;*&lt;::\u00ab1f;x\u00a7;\u00e9:%;I&#039;1zec\u00a3, the: suit is in tima. it i&#039;1i1*ther hel\u00e9 that the<\/p>\n<p>  5-ggt\u00e9ment cf accounts shows that as at the end of<\/p>\n<p>&#8211; 9-\n<\/p>\n<p>Qecember 1992, the defendants are liabie to pay a.:e\u00a71m<br \/>\nof 1&lt;s.4,4e,04\u00bb1.15. The plaintiff failed to esta\u00bb&#039;Vl;;\u00a7.l.ii:4\u00e9.V:i91&#039;: V.<br \/>\nthe defendants are liable ts pay the    &#039;<br \/>\nof 21.25% p.a. on the said amoteii<br \/>\nsuit. am it held that the % a  by?\n<\/p>\n<p>defendants is 16.5&#8242;:\/o p.a. &#8216;1&#8217;i&#8221;\ufb01.e.i*&#8217;efere,&#8221;&#8216;<br \/>\ndeereed the suit for  with<br \/>\ninterest at the rate of   1992 up to<br \/>\nthe date of     at 16.5.9\/o<\/p>\n<p>p.a._. but sif}1pi\u20ac:4_&#8221;Q{;&gt;weve&#8217;:f, &#8216;it heid that the suit<\/p>\n<p>agaizlstwivother  dearly barred by ij111i&#8217;\u00a3;a1:ion<\/p>\n<p>and thereiTe.1je .  .die1i1&#8217;i\u00a7\u00a75sed the suit against them.<\/p>\n<p>  by the&#8221;dis_m.issa\u00a3 of the suit against the other<\/p>\n<p>&#8211;not deereeing the claim of the plainti\ufb01&#8217;<\/p>\n<p>asg&#8217; g}r\u00a2\u00a33.zed_\u00ab   piain\ufb01\ufb01&#8221; has preferred this appeal&#8217;.<\/p>\n<p>  A.  \ufb01earne\u00e9 counsei appearing fer the appeiiam,<\/p>\n<p> the impugned judgrzent. and decree, contended<\/p>\n<p>T ~ the}: as per the statement of accounts a sum ef&#8217;<\/p>\n<p>  \u00bb &#8216; \u00ab.t-\u00a7l\u00e9:&#8221;s%;_p0I:deI2tS though served, have remained<\/p>\n<p>&#8220;:3,%5:\u00a7\u00e9n\u00a3\u00a7 * j <\/p>\n<p>uh! if} ..\n<\/p>\n<p>I~:s.4,4~{),{)41.15 is due from the defendants  \u00a3:g the<br \/>\nplaizntiff. The said account was deciarefff<br \/>\nparforming account. Hawever, before I\ufb02\ufb01i\u00e9&#8217; \u00abf.?i{<br \/>\ninterest is Calcmated and tha{gi\u00e9&#8221;I1ew_<br \/>\nis arrived at. The interest _ is<br \/>\nand then compounded.   th\u00e9<br \/>\nQthfii&#8217; defenziants, .    have<br \/>\nexecuted the Qeed  is a C01&#8217;ltiI11.iiI3.g<br \/>\nguarantee  \u00a7\u00e9&gt;a.\u00a71..:V.};fc:cou:1t beixig an<br \/>\nOpen   ;;;\u00a7;coi1nt, the guarantee<br \/>\nc0:1ti\u00a71ues;&#8217;.9f &#8211;si1it along with the loan and<br \/>\ntheref&lt;:&#039;i;*e  \ufb01committed a serious error in<\/p>\n<p>disi\ufb01iissing the_ $\u00a71it {:11 the geund of bar of limitation.<\/p>\n<p>&#8211;  ..\n<\/p>\n<p>11. In the Light cf the aibresaid materiai an rgcofd,<br \/>\nthe points that arisg for our consideration in   _<\/p>\n<p>are as undert-\n<\/p>\n<p>1) Whether mg *m.%;;:%  % %<br \/>\njusuified in n&lt;$L~.:g\ufb01va1*diiig.__int\u00a7;i&#039;t:si&#039;~\u00ab;it&#039;<br \/>\n21.5% p__.a. and}&#8230;\u00a71je3&lt;;3:;&lt;a:\u00a7;:iI1gh&#039;t;has:_sf;;5it<\/p>\n<p>only at th\u00e9rat\u00e9 V &#039;p:a.?\n<\/p>\n<p>ii) W_f:e.t11e:f&#8221;&#8216;ii:e::&#8217;\u00a7&#8217;iif:df:1g cf\ufb01sge Court<br \/>\n  t.hat .{;he__..Sf_uit VVi:S&#8221;&#8216;barred by<\/p>\n<p>1 _ &#8216;i;_ti;;e 15 j~&#8217;u1$~:i1fi\u00abe;d2&gt;A\u00bb&#8217;<\/p>\n<p> From&#8217;  material on recorci, it is<\/p>\n<p>ciear that .\u00e9i\u00a7l_ the  productad by the piaintiffs,<\/p>\n<p>.,:1n s1:.\ufb011p\u00a7;1*t sf  are all duiy executeci by the<\/p>\n<p>V&#8221;._di~\ufb01?512dan:s.%*.._&#8217;I&#8217;h\u20ac Ageement provides for an ijzterest<\/p>\n<p>pag\ufb01bie ai  V:*\ufb01te\u00a7\u20ac&gt;.5&#8217;\u00a7\/o 13.3. However, the imerest rate<\/p>\n<p> Ts_tipulxa:e\u00a7fig_i$ 5% p.a. over the Reserve Bank of India,<\/p>\n<p>  &#8216;\u00a7*atA\u00a2VTLi%?ith a minimum interesi of 16.5% pa. an tbs<\/p>\n<p> &#8230;_ &#8216; :&amp;IIi\u00a3)UI&#8217;l3Z Of \u00a3<s>_\/- which is the loan faci\ufb01ty gven<\/p>\n<p>bx\/&#8217;<\/p>\n<p>-13 &#8211;\n<\/p>\n<p>that H.s.4,4U,i)41.1f&#8221;&gt; is due as at the end of<br \/>\nBecause, the account was treated as not  ,,<br \/>\naccount, the interest was not compounded  1<br \/>\nand entry is not made in the  j;  . e<br \/>\nl:\u00a7\u20acf0}i&#8217;C filing of the suit, there i\ufb01 \ufb029th\u00a71\u00a7%&#8217;.\/f&#8217;  ..<br \/>\nthe amount is calculated to  _ a\u00a3  1 of<br \/>\n9,623,511-1.3.5.   m\ufb01eed at<\/p>\n<p>by calculating 2 1.iJ3,&#8217;139f&#8217;o    it<\/p>\n<p>is under   is }usu&#8217;I&#8217;1ed<\/p>\n<p>\ufb01x decreei1f;g__Vt%1e.\u00a7fVV_i;5s;Ve},4U,041. 15 with<\/p>\n<p>the admiftlg\ufb02  at 16.5% p.a. from<\/p>\n<p>1.4. 2992 {iii \u00a3h\u00a2% da1V:Ve._ef1he:_&#8221;..;euit. &#8216;1&#8217;heref0re, the finding<\/p>\n<p>the beI0wve_11__Athis question is in accordance<\/p>\n<p>x%\u00e9*&#8211;i.I:I; V..i\u00e9;=\u00a2~.z  1101; Gail for any interference.<\/p>\n<p> hf;  as the suit being barred by time is<\/p>\n<p>:&#8217;iE:ef_\u00a3cert;ed;&#8221;-&#8216;ihe suit is fiieci on 25.2.1995. The ioan<\/p>\n<p> {macaw is dated err: 293?. The first defendant has<\/p>\n<p>T egeicuted the aeknewledgements of debt 011 29.5.1990<\/p>\n<p>it\/e<\/p>\n<p><span class=\"hidden_text\">-15-<\/span><\/p>\n<p>ether loans apart from the suit ioan. The <\/p>\n<p>one and the other defendants stood as __  <\/p>\n<p>respect of ma said loan   cief\u00e9zlcigagit &#8216; T<\/p>\n<p>\u20acX(i'{:\u00a5Jt&amp;d an acknowledggmgnt \u20ac3\u00e9i&#8221;&#8211;.   L&#8217;<br \/>\nE1ft\u20ac1&#8217;\ufb02H1itati()I1. Therefore, VC}0:1\u00a7fi&#8221;t: -i5AV\ufb023;&#8217;:?1\\$V1V:Vit&#8217;ied<br \/>\ndismissifzg the suit    \u00e9gazinst the<br \/>\nsecond defendant    defendants, as<br \/>\nthere is no  Therefore, the<br \/>\njucignent\u00e9 Q3&#8242;   Ig\ufb01fl\u00e9\ufb01ceptionable.\n<\/p>\n<pre>Henc\u00e9i,    in this appeai.\nAccordingly \n\n \n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka High Court Vijaya Bank (A Body Corporate &#8230; vs M\/S Sukhi Decors Pvt Ltd on 22 July, 2009 Author: N.Kumar And Gowda -1- IN THE HIEH comm&#8221; or KARNATA KA A3&#8243; 2AN6ALo:22 omen THIS we 22% my OF JULY, . PRESENT V K E V THE HCZNBLE AND.&#8217; \u00e9 &#8216; % THE :-to:xr3a.E MR.JL}5TICEg\u00a7J{E\u00a7\u00a7\u00a7U\ufb01\u00a7{\u00a7P&#8211;#\u00e9LV;\u00a7 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-30363","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vijaya Bank (A Body Corporate ... vs M\/S Sukhi Decors Pvt Ltd on 22 July, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/vijaya-bank-a-body-corporate-vs-ms-sukhi-decors-pvt-ltd-on-22-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vijaya Bank (A Body Corporate ... vs M\/S Sukhi Decors Pvt Ltd on 22 July, 2009 - Free Judgements of Supreme Court &amp; 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