PASHUPATI FINCAP LTD Vs. GANGA AUTOMOBILES

JUDGEMENT

(1.) THE plaintiffs seek a mortgage decree for the sums of Rs. 44,58,072/- and Rs. 42,00,760/- against the defendant.

(2.) THE facts necessary for deciding the suit are that on 17.02.1995, the Citi Bank N.A. granted loan of Rs. 7.87 crores and certain credit/overdraft facilities upto Rs. 2.10 crores to the defendant. The latter secured the advance and the credit facilities by creating a mortgage through deposit of title deeds in favor of the creditor, i.e. Citi Bank. The property is a 1030 square yard plot, bearing MCD No. 80, Khasra No. 210, Village Adhchini, Tehsil Mehrauli, New Delhi. The plaintiffs, in addition to the title deeds, which have been produced as Ex. PW-1/11, also rely upon two deeds of Power of Attorney executed by the defendant, favoring the Citi Bank, empowering the latter to deal with the said immovable properties, including demising it and creating tenancies. The said deeds are exhibited as PW-1/1. The plaintiffs also rely upon a Memorandum of Entry, evidencing deposit of title deeds, executed for that purpose on 17.02.1995 - marked as Ex. PW-1/2. It is further stated that the defendant's Managing Director, one Sh. Ashwini Suri, on 18.02.1995 issued letter of confirmation stating that the original title deeds of the property had been handed-over to Citi Bank. That letter is produced as Ex. PW-1/3:

(3.) IF M/s. Ganga Automobiles Ltd. clears their obligation towards their loan, you are requested to prematurely liquidate these fixed deposits alongwith the interest earned thereon, and apply the proceeds towards the partial liquidation of the loan facility that we are availing from yourselves and from that date no further Fixed Deposits should be done.