EDC LIMITED Vs. KASTUB SHIPPING PRIVATE LIMITED

JUDGEMENT

(1.) Present appeal is filed under Sec. 32(9) of the State Financial Corporation Act, 1951, (in short, 'the SFC Act') against the judgment and order dtd. 17/5/2012 passed by the Principal District and Sessions Judge, North Goa, Panaji in Civil Misc. Application No. 32/2004.

(2.) The appellant is the original applicant and the respondents are the original respondents before the Principal District and Sessions Court, North Goa, Panaji. Appellant is a Government Company incorporated under Sec. 617 of the Companies Act and formed for the purpose of providing financial assistance to the industrial concerns and to encourage the industrial development in the State of Goa. The company is engaged in lending and advancing finances to the industrial concerns and other commercial activities.

(3.) The respondent is a private limited company having its registered office at 6, Laxmi Apartments, Yeshwantnagar, Tisk, Ponda, Goa. Respondent no. 1 was granted term loan of Rs.1,85,00,000.00 vide letter dtd. 9/1/1998 for the purpose of purchasing a barge to be operated in the Goan waters. The respondents no. 2 and 3 stood as guarantors for the respondent no. 1. The respondents executed agreement dtd. 14/3/1998 power of attorney dtd. 24/2/1998, Deed of hypothecation dtd. 14/3/1998, tripartite agreement dtd. 14/3/1998, Deed of Guarantee dtd. 14/3/1998, certificate of registration for the purpose of obtaining the said loan. The respondents no. 2 and 3 were Directors of the respondent no. 1 Company.