Decided on March 06,2006

United Western Bank Ltd. Appellant
Raipur Polyurethane Pvt. Ltd. Respondents


P.K. Deb, J. - (1.) THIS appeal has been preferred against the judgment and order dated 29th April, 2002 passed by the then Presiding. Officer, D.R.T., Jabalpur in T.A. No. 244/98, whereby and whereunder the appellant -Bank's claim of Rs. 99,04,486/ - together with future and pendente lite interest at the contracted rate and other usual reliefs have been dismissed.
(2.) ADMITTEDLY the appellant Bank had granted the loan to the respondent No. 1 company through its directors respondent Nos. 2 to 4 under several heads in the year 1984. The sanctioned loan was on the following limits: (A) Cash Credit Hypothecation Limit -Rs. 3.00 lacs (B) Letter of Credit Limit -Rs. 6.00 lacs (C) Cash Credit Pledge Limit -Rs. 7.00 lacs (D) Bill Purchase Limit -Rs. 5.00 lacs The loan facilities were utilized according to the appellant Bank by respondent No. 1 company, but additional finance was necessary for restructuring the company and as such on the basis of a resolution passed, the loan limits were restructured in the following manner on 16th October, 1989: A. Cash Credit Hypothecation Limit -Rs. 26.00 lacs B. Cash Credit Supply Bill -Rs. 24.00 lacs C. Funded Interest Term Loan -Rs. 10.55 lacs D. Term Loan -Rs. 9.65 lacs.
(3.) IT is also an admitted fact that the existing stock of the finished goods of the company together with manufactured shoes were kept in pledges by the Bank and those were put under lock and key. At the time of such pledging in the year 1991, stocks -were verified and it was up to the limit of Rs. 28.00 lacs and odd, but according to the respondent Nos. 1 to 4 more finished goods were there which were also pledged with the Bank. There were theft twice in the godown and although the respondents made several prayers for selling of the pledged goods to liquidate their debts, but Bank did not take any steps towards that.;

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