Admit.
The substantial question of law that arises for decision in this second appeal is:-
1. Whether, after the Bank's Suit No. 235 of 1991 for recovery of the defaulted amount from Ram Vilas (respondent no.2) had been decreed by compromise and the amount had been recovered, the Bank could subsequently debit the appellant's account for a sum of Rs. 25,100/- although the appellant was the guarantor and not borrower?
2. Whether, when the liability of the borrower had been absolved in Suit No. 235 of 1991, the guarantor would also be absolved from discharging his burden and therefore, the suit of the guarantor for recovery of the amount illegally realised from him by the Bank was liable to be decreed?
Order Date :- 6.1.2010 Lbm/-
Civil Misc. Stay Application No. 22692 of 2002 IN Case :- SECOND APPEAL No. - 103 of 2002 Petitioner :- Om Prakash Gupta Respondent :- Canara Bank, Agra And Another Petitioner Counsel :- S.K.Kulshrestha Hon'ble Sanjay Misra,J.
Learned counsel for the appellant has submitted that the respondent no.2, Ram Vilas had taken a loan from the Canara Bank for purchase of motor vehicle and the appellant was a guarantor. The respondent no.2 defaulted in payment of loan and the Bank filed a Civil Suit No. 235 of 1991 for recovery of the defaulted amount. He submits that the suit was compromised on 11.10.1992 where after the liability of the guarantor-appellant should absolved however, the respondent-Bank illegally debited the appellant's account with Rs. 25,100/- towards satisfaction of the loan, which it could not have done in view of the compromise decree. He submits that the Trial Court decreed the suit filed by the appellant for recovery of the aforesaid amount however, the Lower Appellate Court without considering the fact that the appellant - guarantor stood absolved of any liability by virtue of compromise between the borrower and the Bank and has allowed the appeal of the Bank illegally.
In view of the aforesaid circumstances, until further orders of this Court, the operation of the impugned judgement and order dated 22.8.2001 passed in Civil Appeal No. 237 of 1997 by the Additional District Judge, Court No.1, Agra shall remain stayed.
Order Date :- 6.1.2010 Lbm/-