PUNJAB NATIONAL BANK Vs. RINKOO PLASTICS INDUSTRIES

JUDGEMENT

(1.) This is a suit under Order XXXIVCivil Procedure Code for recovery of Rs. 8,91,827.00 being principal sum due as on 13.12.1995 payable by the defendants jointly and severally to the plaintiff bank together with pendente lite and future interest along with cost of the suit.

(2.) The plaintiff bank is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The defendant No. 2 is the sole proprietor of defendant No.1 duly registered as Small Scale Industries Firm with Directorate of Industries, Kashmere Gate, Delhi. It is averred that defendant No.2 approached the plaintiff for grant of certain banking facilities for the establishment and enhancement of trade/business activities and after processing the application the following credit facilities were sanctioned in favour of defendant No.1 on 30.3.1991:

(3.) In consideration of the sanctioning/granting of the above said credit facilities the defendant No.1 through defendant No. 2 executed various banking documents of hypothecation of goods to secure a demand , supplementary agreement dated 30.3.1991 in respect of cash credit and also executed hypothecation of assets (machine) to secure term loan of Rs. 2.50 lakhs. A demand draft of Rs. 1.00 lakh was also issued but there is no demand against that. The cash credit facility was payable on demand and the term loan was payable in 60 equal monthly instalments plus interest at the agreed rate commencing three months after the disbursement of the loan. The interest was payable at the rate of 15% towards cash credit facility and 14% towards the term loan facility. The defendant No.1 undertook to repay the entire credit facilities, as per the terms of the agreement and offered personal guarantees of defendant No.3 and defendant No.4. In order to secure further loan amount defendant No.1 also offered simple registered mortgage of property of defendant No.2 and thereby deposited the duplicate copy of original title deeds with the plaintiff bank and also executed registered mortgage in the office of the Sub-Registrar. The details of the property for the purpose of Order 34 are as under: <FRM>JUDGEMENT_39_AD(DEL)5_2001Html1.htm</FRM>