NANDU DWARAKASINGH CHHABRIA Vs. VIJAYA BANK

JUDGEMENT

(1.) 1. 00 The Common question is involved in both the writ petitions. Hence common order is passed.

(2.) 00 The petitioners obtained an overdraft loan from the first respondent viz. , M/s. Vijaya Bank to an extent of 25. 00 lakhs on 16. 1. 1989. According to the petitioners the loan was sanctioned for paying the amount directly to the Customs authority, debiting the loan account of the petitioners herein towards security for due repayment. The petitioners pledged 6,900 fully paid up equity shares of Reliance which are in the name of the first petitioner. The petitioners have also pledged other property and according to the petitioners it is valued at Rs. 14,67,000/- and it belonged to the second petitioner. It was also agreed to mortgage the imported stock worth rs. 50,00,000/- which will be cleared from the customs. A corporate guarantee was also provided.

(3.) 00 The contention of the petitioner is that the stand of the bank is that they did not sell the shares during the pendency of the proceedings before the Debt Recovery Tribunal.