MOHINI HARDAYAL SINGH Vs. PUNJAB

JUDGEMENT

(1.) The instant writ petition has been preferred by Smt. Mohini Hardayal Singh aggrieved by the judgment delivered by D.R.A.T., Allahabad on 1-2-2008 thereby setting aside the decision of Debts Recovery Tribunal, in the matter of sale of residential house situated at S-246, Panchsheel Park, New Delhi in execution of the decree passed against the husband of the petitioner and others.

(2.) Petitioner's case, in short, is that M/s. Sterling Malt and Foods Pvt. Ltd. (hereinafter referred to as "the Company") manufactured malt from its factory located at 34, Industrial Area, Banmore, District-Morena (M.P.). Late Shri Hardayal Singh, husband of the petitioner and Shri N. S. Satyanarayan Rao were the Directors of the Company. Late Shri Hardayal Singh and his family resides at S-246, Panchsheel Park, New Delhi. Company availed financial facilities from Punjab and Sind Bank from its branches at Can nought Place, New Delhi and Jayendrganj, Gwalior. On land, factory buildings, plant and machinery situated at the factory premises charge of the bank was created and personal guarantees were submitted by the aforesaid guarantors. The property in question at Panchsheel Park, New Delhi was not mortgaged for the factory loan.

(3.) With respect to factory situated at Banmore, the malt manufacturing unit stopped functioning in 1983 and its accounts with Bank also became irregular. Bank had filed two civil suits, one in the Court of District Judge, Morena against the Company and its Directors Civil Suit No. 1-B/1987 for recovery of Rs. 3,84,29,670/- with interest at the rate of 13.5% per annum (P.1) and a suit for approximately Rs. 21,00,000/- with regard to the other loan availed of from the Bank's branch at Gwalior.