TRADERS BANK LTD Vs. LAXMI METALS INDIA

JUDGEMENT

(1.) The present suit has been filed by the plaintiff Bank for recovery of Rs.3,53,155.00 with costs and pendente lite and future interest.

(2.) The plaintiff was a Banking Company incorporated under the Indian Companies Act, 1913 at the time of filing the suit and carrying on business at various branches including Rampura Branch, Delhi 110 035. After the institution of the suit the Traders Bank Ltd. as per Notification No.17/6/87-B.O.III(ii) issued by the Government of India, Ministry of Finance dated 12th May, 1988 stood amalgamated with the Bank of Baroda and, as such, the name of the plaintiff Bank was subsequently changed Bank of Baroda and it was allowed by order dated August 25, 1992. Shri Ravinder Singh was the Branch Manager and one of the principal Officers of the plaintiff Bank at the relevant time. He was stated to be duly authorised to sign, verify the pleadings and institute the suit on behalf of the plaintiff Bank by virtue of power of attorney executed in his favour. Defendant No.2 is the sole proprietor of defendant No.1 and is carrying on the business of manufacturing of non-ferrous metals etc. Defendant No.2 is the sole proprietor of defendant No.1 and was carrying on business under the name and style of defendant No.1.

(3.) Defendants 1 and 2 opened a current account with the plaintiff Bank and agreed to be bound by the rules and regulations pertaining to the Current Account. The above said defendants approached the plaintiff on January 16, 1981 for the grant of an advance in the sum of Rs.1,00,000.00 against the pledge of goods pending acceptance of their proposal for the grant of Cash Credit Facility against the pledge of goods to the extent of Rs.5,00,000.00 . The said advance of Rs.1,00,000.00 was granted to the defendants in consideration of the defendants executing the following documents: