BANK OF BARODA Vs. SHREE MOTI INDUSTRIES BOMBAY

JUDGEMENT

(1.) The plaintiff-Bank of Baroda ("Bank" for short) has filed this suit against the defendants for the recovery of their outstanding dues with claim for future interest thereon from the date of suit till realisation. The Facts:

(2.) According to the plaint allegations, the defendant No. 1 is a partnership firm of which defendant Nos. 2 to 4 are the partners. Defendant No. 5 is the father of defendant Nos. 2 and 4, who has guaranteed the credit facilities advanced by the plaintiff to the defendant No. 1.

(3.) According to the plaintiff- bank, in the month of April, 1984, the Bank had advanced Cash Credit facility to the defendant No. 1 in the sum of Rs. 2,50,000/- on its executing necessary loan documents in favour of the plaintiff on 31st March, 1987; such as demand promissory note, undertaking not to allow withdrawals of loan and deposits obtained by it from its customers or relatives; deed of hypothecation of goods; letter of continuing security; letter of partnership; and deed of hypothecation of book debts. The plaintiff-Bank has further granted in favour of defendant No. 1, the Bills Purchase/Bills Discounting facility, on execution of the necessary loan documents by it in favour of the plaintiff on 31st March, 1987. The defendant No. 1 availed the said bills discounting facility.