CENTRAL BANK OF INDIA Vs. ELMOT ENGINEERING COMPANY

JUDGEMENT

(1.) Leave granted.

(2.) On 6-10-76, the third and fourth respondents executed separate guarantee in respect of the facilities granted to the first respondent guaranteeing repayment of amounts. On 20-1-84, one of the Directors declared that equitable mortgage by deposit of title deeds dated 6-10-75 would also form security for the letters of credit, fresh funded term loan, guarantee limited and other facilities allowed to the first respondent, by the appellant. The necessary forms in this regard were filed before the Registrar of Companies, Maharashtra. at Bombay for registering the charges.

(3.) In order to secure the amount under the various heads/credit facilities the first respondent deposited on 17-8-79 with the appellant's Sundernagar Branch, Bombay, an agreement for sale in respect of the first floor of the building belonging to the first respondent. The first respondent requested that its account be transferred from Sundernagar Branch, Bombay to Hyderabad Main Branch of the appellant.