FAISAL Vs. REGIONAL MANAGER, BANK OF BARODA

JUDGEMENT

(1.) The Petitioners, who are two in number, have filed this Writ Petition seeking direction to the Respondent/Bank to close the loan account of a private limited company by the name, M/s. Messwaala Enterprise Private Limited, which is sanctioned as per Ext.P3, after accepting the outstanding amount, and to issue NOC to HDFC Bank, which has sanctioned a new loan of Rs.2.20 Crores to the said Company as per Ext.P4. The Petitioners claim that Messwaala Enterprise Private Limited is a startup company promoted by them, and they are the directors of the said company.

(2.) The case of the Petitioners is that Messwaala Enterprise Private Limited availed a Term Loan of Rs.60,00,000.00 and an Overdraft facility of Rs.40,00,000.00 from the Respondent/Bank. They are the guarantors of the said loans. When they required an additional loan for the expansion of their business, they approached the Respondent/Bank by submitting the necessary application. Since the Respondent/Bank did not sanction the additional loan, Messwaala Enterprise Private Limited approached the HDFC Bank, and the HDFC Bank has sanctioned a Cash Credit loan of Rs.2.20 Crores on the personal guarantees of the Petitioners. Messwaala Enterprise Private Limited produced the Demand Drafts issued by the HDFC Bank out of the said loan for closure of the loan account with the Respondent/Bank. But the Respondent/Bank refused to close the loan account, insisting on closure of the loan availed by another Company promoted by the Petitioners by the name, Fasusa Private Limited. Hence, the Petitioners have filed this Writ Petition.

(3.) The Respondent/Bank has filed a Counter Affidavit opposing the prayers in the Writ Petition.