NICON FERROCHEM Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) By way of instant petition filed under Art. 226 of the Constitution of India, petitioners have prayed for the following main reliefs:

(2.) For having birds' eye view of the matter, certain undisputed facts, relevant for the adjudication of the case at hand are noted herein after.

(3.) Petitioner No.2, Shri Rajesh Kumar Jain, availed facility of Term Loan and Credit from State Bank of Patiala, Industrial Phase-II, Chandigarh, which subsequently came to be taken over by State Bank of India, for his partnership concern i.e. M/s Nicon Ferrochem, having its industrial unit at Gagret, Tehsil Amb, District Una, Himachal Pradesh. Initially, credit facility to the tune of Rs.3.00 Crore, as Term Loan and Cash Credit was extended in favour of petitioner No.2, for equitable mortgages created by the petitioner and person namely Radhey Shyam Aggarwal, qua the properties situate at Up Mohal Ram Nagar, Gagret, Tehsil Amb, District Una, Himachal Pradesh and a house situate over Plot No. 315, Sector 21-C, Faridabad, in favour of the respondent Bank. Subsequently, on the request of petitioner No.2, Term Loan and Cash Credit Limit/existing credit facility was enhanced to Rs.3,62,00,000.00, against security and hypothecation of stocks and mortgage of two properties.