PUNJAB NATIONALBANK Vs. POPULAR PLASTIC UDYOG

JUDGEMENT

(1.) This is a suit filed by the plaintiff-bank for recovery of Rs. 9,11.279.15 from the defendants. The plaintiff's case in brief is that the defendant No. 1, is the sole proprietorship concern of defendant No 2. Defendant No. 2 had approached the plaintiff-bank for the grant of certain loan facility fora purpose of carrying on business of manufacture of Poly Propylene Palathelena, HM (High Density) Tubes and bags, plastic tarpaulin etc.

(2.) The plaintiff-bank had initially granted Cash Credit Facility of Rs. 2,50,000.00 which was raised to Rs. 4,50,000.00 as on 19.4.1983 and to Rs. 5,00,000.00 on 26.2.1986. The defendant had also obtained a temporary Credit Cash Facility of Rs. 50,000.00, which was merged into the Cash Facility thereby totalling to Rs. 5,00,000.00.

(3.) Defendant No. 2 had also hypothecated stock of raw materials to secure the amount advanced under the Cash Credit Facility. Defendants had also obtained a Term Loan of Rs. 1,37,000.00. The plaintiff has set out the details of the disbursement of Term Loan in para 11 of the plaint. The plaintiff's case is that defendant No. 4, who is husband of defendant No. 2 had offered to stand guarantee and executed agreement of guarantee. Defendant No. 4, further to secure the repayment of Credit Loan and Cash Loan, mortgaged the immovable property i.e. property bearing No. D-14A/7A, Model Town, Delhi-9. Defendant No. 4 had duly deposited the sale deed and had also signed letters PW1/10 and PW1/11 in favour of the plaintiff- bank.