1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. SUIT NO.3249 OF 1997 Dena Bank. ...Plaintiff. Versus Smt.Saraswati Naresh Balla & Anr. ...Defendants. ....... Mr.Anant R. Bamne for the Plaintiff. None for the Defendants. ...... CORAM : DR. D.Y. CHANDRACHUD, J. July 20, 2009. P.C.: The suit has been instituted by the Plaintiff-Bank for the recovery of a sum of Rs.85,709/- together with interest. -2. The First Defendant is a sole proprietress of a proprietary concern known as N.S. Textiles and is a principal borrower. The Second Defendant is sued as a guarantor. On the request of the First Defendant, the Plaintiff extended a Cash Credit Facility for the amount of Rs.75,000/- to the First Defendant, in consideration thereof, the First Defendant executed a Demand Promissory Note 2 dated 24th January 1994, a letter of continuity, a Deed of Hypothecation and a general letter of lien and set off. The Second Defendant executed a Deed of Guarantee dated 24th January 1994. By the aforesaid documents, the Defendants agreed to the repayment of the dues of the Plaintiff together with interest at 15.50% p.a. with quarterly rests. Pursuant to a request of the First Defendant, the Cash Credit Facility was extended to an amount of Rs.1,25,000/- with effect from 7th September 1994; upon which the First Defendant executed a Demand Promissory Note, a letter of continuity, a Deed of Hypothecation, a general letter of lien and set off. -3. The Cash Credit Facility was utilized by the First Defendant. The Plaintiff maintained an account in the usual course of business. As on 4th December 1996, an amount of Rs.77,179.92 remained due and payable. Despite an Advocate's letter dated 14th December 1996, the Defendants failed to pay the dues. The First Defendant admitted her liability by a letter dated 20th December 1996. As on the date of the institution of the suit, an amount of Rs.85,709/- remained due 3 and payable. -4. The Defendants have been served with the writ of summons, but have failed to enter appearance. In the circumstances, the allegations contained in the Plaint have remained to be controverted. The Plaintiff has relied upon an affidavit in lieu of Examination-in-Chief of their Chief Manager and a compilation of the original documents. The statement of accounts duly certified under the Bankers' Book Evidence Act has also been relied upon. The claim in the suit has been duly proved on the basis of the evidence on record. The suit shall accordingly stand decreed as prayed, with the modification that the Plaintiff will be entitled to interest at the rate of 9% p.a. on the principal sum from the date of the institution of the suit, until payment or realization. .....