STATE BANK OF INDIA Vs. MADHURI MINERALS AND ALLOYS
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) IN this application for recovery of Rs. 7,56,400.97 towards Cash Credit facility and of Rs. 4,26,427.46 towards Term Loan facility with interest thereupon, there is counter claim by 1st defendant for Rs. 37,75,140/- with interest thereon. Since the Court-fee on the counter claim is paid on Rs. 10 lakhs, it can be considered for that much amount.
(2.) The 1st defendant is the borrower while defendant No. 2 is the guarantor.
The applicant's case is that Cash Credit facility upto Rs. 1.25 lakhs was sanctioned by it to 1st defendant in April,. 1998. At that time Medium term loan for Rs. 3.50 lakhs was also sanetioned. The security for the facility/loan was guarantee by defendant No. 2 and equitable mortgage of 1st defendant's property Bearing Plot No. 68, admeasuring 195.2 sq. mtrs., situated at Mouza-Besa, Khasara No. 22/2, Tahsil and District Nagpur. In lieu thereof, the defendant No. 1 executed in the applicant's favour usual security documents while defendant No. 2 gave letter of guarantee.
(3.) IN April, 1999 the Cash credit limit was enhanced to Rs. 6 lakhs against the same security and on execution of set of security documents/letter of guarantee, as the case may be. On or about 16th June, 2000 1st defendant deposited title deeds of the aforesaid property in order to create equitable mortgage.;
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