STATE BANK OF INDIA Vs. RAGA SYNOPLAST PVT LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application for recovery of Rs. 82,28,192.89ps. by liquidating 1st and 4th defendant's mortgaged properties and movables.
(2.) The borrower (defendant No. 1) is a company of which defendants 2 to 4 are/were directors sued as guarantor. Defendant No. 5 is legal representative of deceased guarantor. Defendant No. 6 is made party because it opened the account in the name of 1st defendant in violation of RBI circulars.
The 1st defendant manufactures rotational moulding products, PVC toys and allied items. In May, 1995 the applicant sanctioned Demand Cash Credit Facility (DCC) of Rs. 10.90 lakhs and Medium Term Loan (MTL) of Rs. 21 lakhs to the 1st defendant at the latter's request.
(3.) THE DCC and MTL were granted against personal guarantees of defendant Nos. 2 to 4 and deceased Mr. Vasant Limbekar, husband of defendant No. 5. THE further security was of equitable mortgage, by deposit of title deeds, by defendant No. 4 of his properties. Defendant No. 1 through its director also deposited title deeds of its factory and thus created equitable mortgage to secure the outstandings.;
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