ALLAHABAD BANK Vs. AMBA CERAMIC DECAL PRIVATE LIMITED

JUDGEMENT

(1.) This is a suit for recovery of a sum of Rs. 23.53,762.00together with pendente lite and future interest @ 13.5% p.a. on Rs.10,15,247.00 and @ 15.5% on Rs. 10,69,160.65p and @ 16.5% p.a. onRs. 2,69,354.35p from the date of suit till realisation of the amount.

(2.) The facts of the case briefly stated are that the plaintiff is abanking company constituted under Banking Companies (Acquisition andTransfer of Undertakings) Act, 1970 having its Head Office at Calcutta andone of its Branch Offices at 17, Parliament Street, New Delhi, Shri I.M.Mishra being the Principal Officer of the plaintiff Bank is duly authorised tosign and verify the pleadings and to institute and prosecute the present suit.

(3.) As per averments made in the plaint, at the request of defendantNo. 1 which is a Private Limited Company incorporated under theCompanies Act, 1956 and in consideration of defendants No. 2 to 5 andShri T.R. Iyengar (since dead) agreeing to stand guarantee in their personalcapacity, the plaintiff Bank sanctioned the credit facilities of term loan ofRs. 6.25 lacs, cash credit (Hyp.) facility of Rs. 3.70 lacs, advance againstD.D. Bills of Rs. 80,000.00 and letters of credit (foreign) Rs. 2.00 lacs todefendant No. 1 vide their letter dated 7th October, 1983. The de defendantNo. 1 through its Director late Shri T.R. lyengar accepted various termsand conditions of the sanction of the above mentioned facilities vide letterdated 8/10/1983.