CANARA BANK Vs. PRESTEL COMMUNICATION PRIVATE LIMITED

JUDGEMENT

(1.) The plaintiff Bank has filed this suit for recovery of Rs.5,36,969.34 paisa. It is stated in the plaint that the plaintiff Bank is a Banking Company duly constituted - under the Banking Companies(Acquisition and Transfer of Undertaking) Act, 1970 having its head office at Bangalore and branch office, amongst others, at 269, Fruit & Vegetable Market, Okhla Industrial Estate, New Delhi-110020, Shri J.G. Bhat being a Divisional Manager is one of the Principal Officers of the plaintiff Bank, is fully 2 conversant with the facts of the case and is competent to sign and verify plaint and file the present suit. He also holds powers of attorney in his favour duly executed by the plaintiff Bank in his favour and as such is authorised, competent and empowered to file the suit for and on behalf of the plaintiff Bank, to sign and verify the pleadings, affidavits engage Advocates and to do all what is just, necessary and in the interest of the plaintiff,Bank in connection with the suit and to do all other co-related acts on behalf of the plaintiff Bank. The present suit is accordingly being signed, verified and instituted by said Shri J.G.Bhat. It is also averred that the defendant No.1 is a Private Limited Company registered under the Companies Act, 1956 having its registered office at A-85, D.D.A.Shed, Okhla Industrial Area, Phase-II, New Delhi-110020. It is engaged in the manufacturing of digital phones etc. It is further mentioned that in or about December, 1987, defendant No.1 who had a current account with the plaintiff Bank in the name and style of M/s Prestel Communication(Pvt.)Ltd. through its Directors/defendants 2 to 4 approached the plaintiff Bank for grant/sanction of following loan facilities as detailed below;

(2.) The defendants 2-4, as Directors of defendant No.1 offered and stood personal guarantees for repayment of the outstanding dues of the defendant No.1. It is also stated that pursuant to the above request of the defendants 1 to 4, the plaintiff Bank granted/sanctioned to defendant No.l on 22nd December, 1987 the OCe OCC limit of Rs.2.50 lacs and supply bill limit of Rs. 1 lac. In order to further secure the outstanding dues against the defendant No.1 in the aforesaid OCC limit and supply bill limit, the defendants 1 to 4 hypothecated and charged in favour of the plaintiff Bank, the following goods, commodities, raw materials etc:-

(3.) The aforesaid OCC limit and supply bill limit were secured by the personal guarantees of defendants 2 to 4 and hypothecation of stocks,, raw materials, machineries and books debts of defendant No.1. The plaint' further disclosed that in consideration of and in connection with the grant/sanction of aforesaid OCC limit and supply limit, the defendants 1 to 4 signed and executed the requisite loaning documents on 22nd December, 1987 and ? 3/12/1987 including the following: