PUNJAB NATIONAL BANK Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) By way of this writ petition, the petitioners have primarily prayed for the following relief:

(2.) The case of the petitioners is that they are "Body Corporates" constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and are carrying on business as Bankers. Their grievance is primarily against respondents No. 1 to 3, who according to the petitioners have acted in contravention of law and failed to discharge their statutory duties.

(3.) Respondent No. 4, which is a private limited company, had started banking with petitioner No. 1 in the year 2004. Said respondent was released a cash credit hypothecation limit of Rs.140.00 lacs, cash credit (book debt) facility of Rs.100.00 lacs, term loan facility of Rs.1000.00 lacs, FLC DP within Term Loan of Rs.60.00 lacs and ILC/IFC facility of Rs.200.00 lacs by petitioner No. 1. In consideration thereof and in addition to the security documents having been executed, respondent No. 4 also created an equitable mortgage of its factory land and building. The facilities so extended to respondent No. 4 were enhanced on the request of respondent No. 4 and said respondent was also advanced financial facilities by way of cash credit against stock and book debts, term loan for project expansion and letter of credit (F) for import of raw materials under DP/DA in the year 2006.