(1.) This appeal by the original defendant No. 5 is directed against judgment and Order dated 11th July, 2000 passed by the Presiding Officer, Debts Recovery Tribunal, Ahmedabad in Original Application No. 1, 1998. That application was filed by the respondent No. 1 Dena Bank for recovery of Rs. 1,20,85,243/- against the appellant and respondent No. 2 to 9. Few facts are necessary for the purposes of this appeal and those are as follows:
(2.) The respondent No. 2 is a public limited company. Respondents No. 3 to 9 were directors of the respondent No. 2 company at the material time. The appellant was also director of the respondent No. 2 Company from May 1995 to Aug. 1995 and resigned therefrom on 21st Aug., 1995. The respondent No. 2 applied to the respondent No. 1 bank for grant of financial assistance and in pursuance thereof, the respondent No. 1 bank sanctioned term loan facility for Rs. 135 lacs and cash credit facility (hypothecation facility) for Rs. 23.83 lacs. The appellant executed deed of guarantee on 2nd May, 1995. Thereafter, the respondent No. 2 was found irregular in operating the accounts and there were defaults. That is how, after recalling the loan amount and dues, the respondent No. 2 bank filed original application on 1-1-1998 before Debts Recovery Tribunal, Ahmedabad for recovery of Rs. 1,20,85,243/ - with further interest.
(3.) The appellant filed his written statement on 12-8-1998 inter alia contending that he has resigned as a director of the respondent No. 2 with effect from 17-8-1995 and that respondent No. 1 was informed about the same by letter dated 21-8-1995. The respondent No. 2 Company accepted resignation and intimated on 5-9-1995 and 25-9-1995 to that effect. The Registrar of the companies was also intimated by respondent No. 2 about resignation of the appellant. The respondent No. 1 was also intimated by the company about the said resignation by letter dated 18-9-1995. The appellant contended that in pursuance thereof, M/s. C.C. Gandhi and Company Advocates representing the bank prepared fresh deeds of guarantee to be obtained from three newly appointed directors who were inducted in the place of the appellant. The respondent No. 1 bank by its letter dated 5-9-1995 informed the appellant that his liability as a guarantor for sum of Rs. 10,11,000.00 and interest thereon remains unaffected, inspite of resignation as a director.