BANK OF MAHARASHTRA Vs. AEVEES PHARMACEUTICALS

JUDGEMENT

(1.) THE plaintiff- Bank ("the Bank" for short) has filed this suit for the recovery of their outstanding dues; due and recoverable from the defendants in the sum of under the Cash Credit (Hypothecation) Account and cash Credit (Bills) Account together with interest, on the sum of Rs. 99,138. 16 at the rate of 16% per annum with quarterly rests from the date of the suit till payment in full and final.

(2.) THE factual matrix brought on record is that the defendant No. 1 is a partnership firm engaged in manufacturing of pharmaceutical products having its factory at 345/a, Wagle Industrial Estate, Thane-400 604 of which defendant nos. 1 and 2 were the partners, who had approached the plaintiff- Bank in the month of October, 1999 to seek two cash credit facilities viz. (i) Cash Credit facility against the (Hypothecation of Goods and Raw Materials) to the extent of rs. 25,000/- and (ii) Cash Credit Facility (against the Bills of Defendant No. 1)to the extent of Rs. 25,000/ -.

(3.) THE plaintiffs have stated that the aforesaid facilities were sanctioned in favour of defendant No. 1- partnership firm on 31st October, 1984. The defendant Nos. 1 and 2 in the capacity of partners of defendant No. 1, inter alia; executed various loan documents in respect of the aforesaid cash credit facilities and the said documents were renewed by them from time to time. Last of such renewal, according to the plaintiffs, was on 17th October, 1986.