SICOM LTD. Vs. INDRAJEET ARYA AND ORS.

JUDGEMENT

(1.) This petition is filed by SICOM Ltd. which is a unit of State Financial Corporation (SFC) for liabilities incurred by the respondents as guarantors under four deeds of guarantee. The petition is filed under Section 31 (1) (aa) and Section 32 of the State Financial Corporations Act, 1951 (the Act) for enforcing liability of the sureties under the contract between the SICOM and the principal borrowers.

(2.) The principal borrower is the company of which the two guarantors, the respondents herein are directors. The company of the respondents executed agreements for bills discounting facility with the petitioner on 8th November, 2004 for Rs.5 Crores, on 15th March, 2005 for further Rs.5 Crores, on 19th July, 2005 for further Rs.5 Crores and an agreement for further Rs.5 Crores dated 5th May, 2008 totaling to Rs.20 Crores. Thus the earlier facilities were extended and renewed from time to time. The last of the agreement specified that the facility for Rs.15 Crores till then granted was further extended and was admitted and acknowledged by the company to be repaid with interest at the contractual rate along with cost, charges and expenses of the execution of the agreement. Under that agreement the terms and conditions of the earlier letters of the petitioner were to continue to apply to the enhanced facility.

(3.) The respondents along with company jointly and severally promised to pay the sums of Rs.5 Crores, Rs.10 Crores, Rs,15 Crores and Rs.20 Crores as per the facilities granted, the last of which was executed on 5th May, 2008 and it was payable with interest @ 12.75% pa.