INDIAN OVERSEAS BANK Vs. SUPREET ENTERPRISES

JUDGEMENT

(1.) This is a suit for recovery of Rs.6,41,380/- with pendente lite and future interest. The case of the plaintiff bank is thai the defendant no.1 is a partnership firm which through its partners, who are defendants 2 & 3, obtained cash credit facility to the extent of Rs.1,55,000/- against the following documentation":-

(2.) The defendants No.2 & 4 executed Letters of Guarantee and individually bound themselves for repayment of Rs 2,95,000/- with interest and other charges, in consideration of the sanction of the abovwmentioned loan to defendant no.1.

(3.) On 25.6.1991 the cash credit facility was enhanced by Rs.45,000/- and thus became Rs.2 Lakhs in all. Similar documentation was carried out at that time also.