SYNDICATE BANK Vs. SILVER KING

JUDGEMENT

(1.) The present I suit has been filed by plaintiff. Syndicate Bank, through Shri P.D. Shenoy, the then acting Manager and Principal Officer of its branch at Asaf Ali Road, New Delhi I for recovery of Rs. 3,69,305.23 against defendants'

(2.) Facts leading to the institution of suit in brief are that plaintiff bank sanctioned the following facilities to defendants for their business (defedants 2 to 7 are the partners of M/s Trade and Exports, a business concern of defendant No. 1) Nature of facility A/c No. Date of Limit documents OS L against hypothecation of machinery 24/73 28.4.73 Rs. 47,000.00 OSL against hypothecation of Machinery 4/74 10.6.74 Rs. 50.000.00 ODH against hypothecation of stocks 53/73 29.5.73 Rs.30,000.00 In respect of loan account No. 24/73 for Rs. 47,000.00 defendants executed various documenta on April 28, 1973, carrying interest at the rate of 4 per cent per annum above the bank rate with a minimum of 10% per annum compounded quarterly. Defendants 2 to 7 also executed the agreement as sureties undertaking to repay the loan The defendants agreed to repay this loan by means of monthly instalments of Rs. 1250/ each.

(3.) In respect of the loan of Rs. 30,000/ in account No. 53 of 1973, against hypothecation of goods, defendants executed various bank documents including Joint Demand Promissory Notes on May 29, 1973 carrying interest at the rate of 4 per cent above the bank rate with minimum of 10 per cent per annum compounded quarterly. Defendants 2 to 7 also executed and delivered to plaintiff a letter of authority dated May 29, 1973 authorising defendant No. 2 to operate the accounts and to execute documents and to acknowledge liabilities as mentioned therein.