STATE BANK OF INDIA Vs. INDIAN ELECTRIC

JUDGEMENT

(1.) Plaintiff, State Bank of India has filed this suit for recovery of Rs. 15,09,661-71p. Defendant No. I is a partnership firm of which Deepak K. Singh, defendant No. 2 and Krishna K. Rawat, defendant No. 3 ate the partners. The claim is that as on 15th April 1985 defendants' outstanding in the accounts with the plaintiff were as under:- <PG>11</PG> MTL (Machinery) Rs. 2,20,524-77 Cash Credit (FT) Rs. 3,52,637-49 Cash Credit (Bills) A/c Rs. 6,25,499-68 MTL Equity Fund Assistance Rs. 66,000-00

(2.) Defendant No. 4 is a Private Limited Company and is being sued as acceptor of the various bills drawn by defendant No. I on it. Although decree for full amount in suit was claimed by plaintiff against all the defendants but during arguments, learned counsel for the plaintiff, stated that defendant No. 4 is liable only in respect of cash credit (Bill) Account and the plaintiff does not claim any amount from the said defendant in respect of three other credit facilities, namely, MTL (Machinery), Cash Credit (FT) and MTL (Equity Fund Assistance).

(3.) By orders made on 22nd September 1987 Mr. Mohinder Goel, advocate, was appointed a receiver to make an inventory and take possession of the goods of defendant No. I firm. He was also directed to keep the goods at a place/godown to be provided by the plaintiff bank. Defendant No. 2 was directed to give all assistance to the receiver. Inventory of the goods, as directed by the court, was prepared and the receiver has submitted a report dated 14th March 1988, inter-alia, staling that the factory is under lock and key of Mr. Deepak K. Singh and machinery/goods were not removed because it was felt that most of the machines which are embedded in the floor will get damaged because of its ramoval and transportation. The report also states that factory is closed since 1985 and that no useful purpose shall be served by storing the machines for a longer period till the disposal of the suit. The receiver further states that the machines be disposed of on 'as is where is basis' after giving opportunity to both the parties.