STATE BANK OF INDIA Vs. P K ENTERPRISES

JUDGEMENT

(1.) The plaintiff State Bank of India instituted the above suit on 4-9-1989 for recovery of Rs.5,34,130.33 against defendant No.1, M/s. P.K. Enterprises, a proprietorship concern of defendant No. 2, Shri Arun Lal. Defendants 3 and 4 Shri Ramesh Chand and Shri Jai Parkash Gupta being the guarantor and mortgagor to secure loan facilities provided by the State Bank of India to defendant No. 1.

(2.) The plaintiff bank had extended the following loan facilities to the defendant No. 1:- <FRM>JUDGEMENT_381_AD(DEL)3_1996Html1.htm</FRM>

(3.) Defendants namely Shri Ramesh Chand and Shri Jai Parkash Gupta stood as guarantors for the loan facilities extended. The defendants executed the documents detailed in para 5 of the plaint in respect of the three facilities namely Medium Term Loan, Cash Credit (Factory Type) facility and Cash Credit (B. D.) Facility. The documents executed included agreements for loan against hypothecation of machinery, revival letters, pronotes, undertakings, agreement for cash credit, Form-1 Special Guarantee Bond. The defendant No.4 is stated to have also created registered mortgage on 3-3-1986 in respect of agricultural land situated in Khewat/Khata No.439/512 Rectangle No.4, Qila No. 18/3(2-19), total land = 2 Canal 19 Marias situated at Nuh, Tehsil Nuh, District Gurgaon. The defendant No.4 also executed a mortgage in respect of its property bearing No. 522 in Ward No.V, in the Municipal record of Nuh in favour of the plaintiff bank to secure the various loan facilities.