STATE BANK OF SAURASHTRA Vs. RAVI PROFILES PVT LTD
LAWS(DR)-2004-3-6
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on March 12,2004

Appellant
VERSUS
Respondents

JUDGEMENT

Vijay K.Verma, - (1.) THE Applicant Bank has filed an application being OA No. 422 of 2001 against the respondents No. 1 to 5 jointly and severally for recovery of a sum of Rs. 29,50,659.49p. with cost and further interest at the rate 15.75% per annum with quarterly rests from the date of filing of the application till realisation.
(2.) It is stated in the application that the respondent No. I is a company incorporated under the provisions of the Companies Act, 1956 vide registration No. 04-13349 of 1989-90 on/around 12th February, 1990 with the main object of carrying on business of manufacturers, processors, reprocessor, fabrications, etc., that respondent Nos. 2 to 5 are sureties for the financial facilities sanctioned by the applicant to the respondent No. 1 company. At the request of the respondent No. 1 company, applicant sanctioned following financial facilities vide letter dated 6th June, 1991 on certain terms and conditions :- (i) Cash Credit pledge (FT) Limit -Rs. 2.00 lacs (ii) Overdraft against Book Debt -Rs. 1.00 lac
(3.) TO avail the above said credit facilities, respondents have executed following security documents on 3rd August, 1991 :- (i) General Agreement for the grant of small Industrial Advances and Hypothecation of Moveable, Book Debts and other Assets. (ii) Agreement for Overdraft/Credit (Hyp. of Debts and Assets), (iii) Special Hypothecation Account. (iv) Agreement for the grant of Small Industrial Advances, In addition to above, respondent No. 3, Shri Suresh Nanalal Vyas deposited the original title deeds by way of security for his immoveable property described in Sr. No. 1 of Schedule 1 to the main O.A.;


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