MICRON COMPUTERS Vs. PROGRESSIVE CO OPERATIVE BANK LTD

JUDGEMENT

(1.) THIS appeal is filed against the order dated 27. 7. 1993 in case No 701 of 1993 passed by the learned Judge, Co-op. Court No III, bombay, by which he confirmed the order of attachment before judgment.

(2.) THE brief facts of the case are as follows : The Respondent Bank has filed a dispute for the recovery of loan amounts given to the Appellants by way of cash credit facility and term loan with interest at the rate of 19 5% p a. The amount as on the date of filing of the dispute due and payable by the appellants is Rs. 7,79,54760. The Respondent bank also moved an application for interim relief on the same date i. e, on 306 1993 i. e for an order of attachment before judgment and also prayed for attachment of the movables and for appointment of Court Receiver for the movables which are duly hypothecated to the bank by the borrower by virtus of a bypothecation agreement duly executed. The learned Judge after hearing on the application passed an ex-pane conditional order of attachment before judgment and appointed a Court receiver in respect of the hypothecation goods and the Court receiver was further directed to take inventory and was asked to report to the Court. The appellants were directed to furnish solvent security worth the claim amount by 12 7. 1995 failing which the order of attachment will be continued. Accordingly, the Court Receiver visited the suit premises on 3. 7 1993 and took inventory of the movables. The returnable date of the ad-interim was on 12. 7. 1993. On 12. 7. 1993 and on the subsequent date i. e on 27. 7. 1993 the opponents failed and neglected either to furnish solvent securitydeposit the claim amount or to file their affidavit in reply. Consequently, the learned Judg3 was pleased to confirm the earlier order of attachment before judgment by his order dated 27. 7. 1993.

(3.) AGGRIEVED by the order of confirmation of the ad-interim order of attachment before judgment by order dated 27. 7. 1993, the appellants filed the present appeal on 13. 8. 1993 and this Court after hearing the learned advocate for the Appellants granted ex-parte ad-interim stay of the order dated 27. 7. 1993 and this court directed the appellants, without prejudice to the rights and contentions of the parties, to deposit Rs. 40,000/- within one month, and the notice was made returnable on 16. 9. 1993.