SICOM LTD Vs. PARCA PAPER INDUSTRIES LTD

JUDGEMENT

(1.) The Petitioner granted a loan of Rs.4.37 crores to Respondent No.1. Respondent Nos.2 to 7 guaranteed the repayment of the said loan under deeds of personal guarantee and corporate guarantees executed by them ExhibitsA to E, to the Petition. The Petitioner sought to enforce the guarantees. Since there were defaults in the repayment of loan, the Petitioner got the properties of Respondent No.1 mortgaged to the Petitioner, sold for recovering the loan amount under Section 29 of the State Financial Corporation Act, 1951 (SFCA).

(2.) The Petitioner had ceded its first charge from the mortgaged property on Paripassu basis in favour of the Maharashtra State Financial Corporation, who had also granted another loan to Respondent No.1.

(3.) The Petitioner invoked the Deeds of guarantee executed by Respondents 2 to 7 by their notice dated 14th September, 2000, ExhibitE, to the Petition, calling upon the Respondents 2 to 7 to pay the Petitioner Rs.7,44,06,464/. The Respondents failed to pay that amount. The Petitioner, therefore has sought to enforce the liability of Respondents 2 to 7 as the sureties/guarantors of the said loan under Section 31(1) (aa) of the SFCA. The Petitioner has claimed Rs.8,34,39,808/as on 31st December, 2000 under the particulars of claim, ExhibitG to the Petition.