MURTHY HOSIERY MILLS Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Whether suit against 2nd defendant/2nd respondent State Bank of India, Tirupur is maintainable on the Original Side of the Madras High Court is the point arising for consideration in this appeal, which arises out of an order of learned single Judge dated 7.7.2010 in Application No.805 of 2010 in C.S.D.No.12201 of 2008 declining to grant leave to sue the 2nd respondent.

(2.) The appellants/plaintiffs filed the suit in C.S.D.No.12201 of 2008 for recovery of a sum of Rs.40,90,020.95 with interest at the rate of 18 percent per annum.

(3.) Case of appellants/plaintiffs is that the appellants/plaintiffs are sister concerns and that they are the partnership firms having registered place of business at Tirupur and carrying on business in export of garments at Tirupur. The appellants are engaged in the manufacture and export of hosiery products. In the course of their business, the appellants availed number of loan/credit facilities from the 2nd respondent/2nd defendant. For availing facilities, appellants have provided primary securities such as stock and receivables, bills, etc., apart from collateral securities by creating equitable mortgage of their immovable properties situated at Chennai and Tirupur by depositing the title deeds.