CENTRAL BANK OF INDIA Vs. ARVIND ARUN MANDLIK

JUDGEMENT

(1.) The plaintiff is a nationalised bank constituted, established and functioning under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 ("said Act" for short) having its central office at Chandermukhi, Nariman Point, Bombay- 400 021 and Branch Office known as Boribunder Brnch, Dr.D.N.Road, Bombay- 400 001 ("Bank" for short). Defendant No.1 is a sole proprietor whereas defendant Nos.2 and 3 are sued as guarantors.

(2.) The bank has filed this suit against the defendants on the following factual matrix:

(3.) On being applied by defendant No.1, the plaintiff- Bank had granted cash credit hypothecation facility and overdraft facility. The said financial facilities were released against execution of loan documents, details of which are to be found in para-4 of the plaint so far as cash credit hypothecation facility is concerned and in para-5 so far as overdraft facility is concerned. Both the facilities were enjoyed by defendant Nos.1 and 2. Defendant Nos.2 and 3, by executing letter of guarantee, had guaranteed the amount of loan under the said financial facilities.