N SANJEEVA Vs. STATE BANK OF TRAVANCORE
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS regular appeal is directed against the order dated March 9, 2005, passed in TA No. 230 of 2001 by the DRT-II at Chennai. The second and third defendants are the appellants.
(2.) The first respondent-bank filed a suit in C.S. No. 1536 of 1993 before the High Court of Madras for recovery of a sum of Rs. 39,01,158.78 together with interest at 17.75 per cent, per annum from June 25, 1993, till realisation against one M. K. Kumar, the first defendant and proprietor of Shree Durga Packaging and Allied Industries and Shree Durga Prints and the appellants herein, namely N. Sanjeeva and Narayana Udupa, and the same was transferred to DRT-II, Chennai, and it was taken on file as T.A. No. 230 of 2001.
The business was originally carried on as partnership firm consisting of Kumar and Sanjeeva by partnership deed dated February 15, 1981, and for the said partnership business. Cash credit (mundy) limit of Rs. 2,60,000 was granted for which defendants Nos. 1 and 2 have executed necessary documents. The bank also granted overdraft (supply) facility to a limit of Rs. 2 lakhs for which also they have executed necessary documents. The first and second defendants dissolved the firm on April 1, 1985, by which the first defendant took over the business of Shree Durga Packaging and Allied Industries as a sole proprietor. Though the firm was dissolved, the second and third defendants have executed revival letters thereby agreeing to guarantee the loan granted to the firm. Thereafter, the first defendant as a sole proprietor of Shree Durga Packaging and Allied Industries, borrowed amount on cash credit (book debt) limit of Rs. 2 lakhs and the same was also enhanced. Overdraft (clean) facility limit was also granted to the first defendant as a proprietor. By a tripartite agreement entered into on November 13, 1990, the first defendant had acknowledged a sum of Rs. 8,50,448.25 as the amount due to the bank and further admitted that a sum of Rs. 9,33,360.47 as an aggregate amount due to the plaintiff by the first defendant as a sole proprietor of Shree Durga Packaging and Allied Industries in respect of (1) cash credit (mundy) limit, (2) cash credit hypothecation (book debt) limit and (3) overdraft (clean) limit.
(3.) IT is the further case of the respondent bank that the first defendant was also carrying on the business as sole proprietor in the name and style of Shree Durga Prints and the first defendant availed loan such as cash credit and executed necessary documents thereof. Two medium term loans were also granted to the first defendant and they had also executed mortgage of the properties. As the defendants have not paid the amount due, the respondent-bank filed the suit for recovery of the amount.;
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