(1.) THIS summary suit is filed on the assertion that the plaintiffs had advanced term loan, corporate loan and short term loan to one Overseas Cables Limited, of which all the 4 Defendants herein are directors. Various documents were executed in respect of the said transaction. The Defendants stood guarantors for the said transaction and executed four separate continuing guarantee deeds. The said Overseas cables Limited failed to repay the loan amounts, for which demand was raised by the Plaintiffs on 17th March 2001 and also on 13th November 2000 and, once again on 17th November 2000. As no response was received from said Overseas Cables Limited, the Plaintiffs Invoked the guarantees against the Defendants on 12th June 2001. As the defendants failed to comply with the demand raised by the Plaintiffs, which was founded on the conditions of the agreements arrived at between the parties, the plaintiffs have filed the present suit for the following reliefs :
(2.) HOWEVER, during the course of arguments, counsel for the Plaintiffs, relying on the decision of the Full Bench of our High court in the case of SICOM v. Prashant tanna, 2004 (2) Mah LJ 292 : (AIR 2004 bombay 186) made oral submission that the plaintiffs would forego the claim for penal interest and restrict the claim of Interest strictly on the basis of dictum of the Apex court in Central Bank of India v. Ravindra, reported in AIR 2001 SC 3095. Counsel for the Plaintiffs placed on record statement to show the modified claim, which the Plaintiffs would press into service against the defendants on the basis of dictum of Central Bank of India's case (supra ). As per this statement, the principal amount of the claim towards term loan, corporate loan and short term loan in aggregate is in the sum of rs. 4,36,00,000/- and the permissible interest thereon is Rs. 3,17,02,635/- till the institution of the suit and the further claim of interest is at the rate of 18 per cent, per annum from the date of institution of the suit till payment or realisation of the suit claim amount. Accordingly, the suit claim is now for Rs. 7,53,02,635/- (being principal amount of Rs. 4,36,00,000/- and rs. 3,17,02,635/- being interest component)till the institution of the suit and future interest at the rate of 18 per cent, per annum from the date of Institution of the suit till payment and/or realisation.
(3.) THE claim putforth by the plaintiffs has been resisted by the Defendants, interalia, by raising following defences :