HPSIDC Vs. TEJ STRAW BOARDS

JUDGEMENT

(1.) THE appellant-plaintiff has filed the instant appeal feeling aggrieved and dissatisfied by the judgment and decree passed ex parte by the District Judge, shimla in Case No. 4-S/l of 1996, dated 15-12-1997 whereby the suit filed by the plaintiff was dismissed.

(2.) THE defendant No. 1 M/s. Tej Straw board (P) Limited, a private limited company duly incorporated under the provisions of companies Act, 1956 of which the defendant nos. 2 to 8 are the Directors. It applied for the grant of term loan to the tune of rupees 2. 55 lacs for the construction of factory building, purchase of land, plant and machinery for setting up unit for the manufacture of paper/board at Kala Amb, Dis-trict Sirmaur, H. P. The said loan was sanctioned in favour of defendant No. 1 by the plaintiff-Corporation in July/august, 1980. The Company, aforesaid, agreed to pay the interest on the term loan facility at the rate of 9. 5% per annum. For securing the repayment of loan and interest thereon, the defendants executed term loan agreement and hypothecation agreement on 22-10-1980 in favour of the Plaintiff-Corporation for repayment of the principal amount, interest accrued thereon and other moneys which may be due to the Plaintiff-Corporation. The loan was agreed to be repaid in six monthly installments beginning from 10-12-1982 and ending on 10-6-1990. It is alleged that the defendants -respondents failed to adhere to the repayment schedule. The pro forma defendant-respondent (H. P. Financial Corporation)was obliged to take over possession of the assets of the industrial concern of the defendant respondents on 6-10-1987 under section 29 of the State Financial Corporation act, 1951. Thereafter, the assets of the industrial concern were sold for Rs. 28. 50 lacs by the pro forma respondent to Shri mohinder Singh and M/s. Vima International limited, Delhi after providing due opportunity to the defendants-respondents. The sale proceeds were shared between the plaintiff and pro forma respondent, aforesaid, as follows : (a) H. P. S. I. D. C. (Plaintiff] Rs, 2. 30,043,00 (b) H. P. F, C. (Pro forma Respondent No. 9): Rs. 26,19,957. 00

(3.) AFTER adjusting the sale proceeds received from the respondent No. 9 on 9-11-1995. there remained a shortfall to the tune of rupees 3. 03,649. 94 paise for the payment of which the defendants-respondent Nos. 2 to 8 being Guarantors were liable to pay to the plaintiff. They were asked to liquidate the aforesaid amount with interest vide notice dated 25-11 -1995 within one month but nothing was deposited and the defendants-respondents did not respond to the notice, aforesaid. Therefore, a suit for the recovery for the remaining amount was filed against the defendants-respondent Nos. 2 to 8 jointly and severally together with cost and future interest at the contractual rate with half yearly rests and also prayed to pass a preliminary decree in favour of the Plaintiff-Corporation and against the defendants-respondents jointly and severally for the aforesaid sum along with pendent lite and future interest with costs.