BANK OF INDIA Vs. PAN AFRIC CHEMICAL INDUSTRIES
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application for recovery of :
Rs. 14,83,050.82 being dues under Cash Credit (Hypothecation of Stocks) Facility with further interest @ 16.75% p.a. with quarterly rests from the date of the filing of the O.A. till payment and/or full realisation.
Rs. 3,36,085.54 being dues under Cash Credit (Pledge of Stocks) Facility with further interest @ 16.75% p.a. with quarterly rests from the date of the filing of the O.A. till payment and/or full realisation.
Rs. 15,19,880.26 being dues under Bill Discounting Facility with further interest @ 16.75% p.a. with monthly rests from the date of the filing of the O.A. till payment and/ or full realisation.
Apart from the aforesaid three amounts, the applicant has sought declaration that a sum of Rs. 3,28,892.56 (from out of proceeds of fixed deposit of the defendant No. 2 with the Bank) has been appropriated towards its claim in respect of Cash Credit (Hypothecation of Book Debts). Alternate prayer is for recovery of said amount in the event of such declaration not being given.
(2.) The defendant No. 1 is a Partnership Firm of which the defendant Nos. 2, 3 and the Deceased Bharmal Rajshi Shah (defendant Nos. 5 and 5 being his Legal Representatives) were partners upto 1.1.1985. On or about that date while the defendant No. 3 retired as Partner, the 4th defendant entered the Partnership Firm. The applicant has stated that by Deed of Retirement dated 29.12.1984, the 4th defendant has taken over all the assets and liabilities of the 1st defendant w.e.f. 1.1.1985.
The applicant's case is that in or around October 1979, Cash Credit (Hypothecation of Stock) Facility of Rs. 2.50 lacs was sanctioned to the Partnership Firm. There was enhancement in the same by Rs. 1 lac in or around May 1980, by Rs. 2 lacs in or around August 1980, by further sum of Rs. 2.50 lacs in September 1981, by another amount of Rs. 1.50 lacs in July 1982. After induction of the defendant No. 4, security documents were executed on or about 8th January, 1985 in respect of the aggregate sum of Rs. 9.50 lacs. In or around August 1980, Cash Credit (Hypothecation of Book Debts) Facility of Rs. 1 lac was sanctioned in which there was enhancement by Rs. 1 lac in October 1982. In that respect also fresh security documents in respect of aggregate sum of Rs. 2 lacs were executed on or about 8th January, 1985. The third facility viz. Cash Credit (Pledge of Stocks) Facility of Rs. 3 lacs was sanctioned in or around November 1979. There was enhancement by Rs. 3 lacs in the same on or about 24.8.1980 and by further Rs. 1 lacs in or around October 1982. On or about 8.1.1985, fresh security documents for aggregate of Rs. 7 lacs were executed. The last and the 4th facility viz. Bill Discounting Facility of Rs. 2 lacs was sanctioned on or about 6.11.1979. There was enhancement in it by equal amount in or around May 1980.
(3.) THE defendant No. 1 availed of the facilities as sanctioned/enhanced from time-to-time. However, the re-payments were not made despite repeated demands. THE fixed deposits of the defendant No. 2 one of US $ 70,000 and another of Indian Rs. 15,000/- and Rs. 10,000/- were lying with the applicant. From out of proceeds of the fixed deposits, the applicant appropriated its outstandings under Cash Credit (Hypothecation of Book Debts) of Rs. 3,28,892.56. THE fixed deposit Receipts proceeds were also appropriated towards outstanding of 1st defendant's sister concerns viz. Trison Chloro Organic Industries and International Catalyst In-organic Industries. THE balance F.D.R. proceeds of Rs. 3,60,510.82 are lying with the applicant Bank which are sought to be appropriated against the Bank's claim under Cash Credit (Hypothecation of Stocks). Since the payment is not made despite repeated demands this O.A. is filed.;
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