UNION BANK OF INDIA Vs. A P FASTNER
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application for recovery of Rs. 12,69,803.64 Ps.
(2.) Defendant No. 2 carries on business in the name of 1st defendant. Thus, defendant No. 1 is not legal entity and has, therefore, been unnecessarily shown as separate defendant. The defendant No. 1/2 is the borrower and defendant No. 3 is the guarantor.
The defendants have been sued on the ground that on or about 18th March, 1993. Cash Credit (Hypothecation of Stocks) facility of Rs. 10 lakhs and Cash Credit (Hypothecation of Book Debts) facility of Rs. 5 lakhs were sanctioned by the Bank to the defendant No. 1/2 on personal guarantee of defendant No. 3 and pledge of FCNR deposit of Pound Sterling 10.000/-.
(3.) THE defendant No. 1/2 executed usual security documents including demand promissory note, Agreement of Hypothecation and other security documents. THE defendant No. 3 had given letter of guarantee. THE defendant No. 1/2 availed of the cash credit facilities. THE account, however, was not operated regularily. On failure to clear the outstandings, the defendant No. 1/2 executed letter of acknowledgement of debt dated 30.9.1995 in respect of the then outstanding. THE amount, however, was not paid even thereafter despite repeated demands as also notice through Advocate. THErefore, this O.A;
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