Decided on July 04,2006

Vardan Electronics And Ors. Respondents


Narendra Kumar, Presiding Officer - (1.) APPLICANT Union Bank of India initiated this Original Application against the defendant Nos. 1 to 4 before this Tribunal for recovery of Rs. 15,92,991/ - (Rupees fifteen lacs ninety -two thousand nine hundred ninety -one only) together with pendente lite and future interest @ 14.57% per annum with monthly rest from 1" February, 2003 till full realisation, costs and other usual reliefs.
(2.) AS per applicant Bank the brief facts of the case are as under: The defendant No. 1 is a proprietorship firm and the defendant No. 2 is the proprietor and the defendant Nos. 3 and 4 are guarantors of defendant No. 1. The defendant No. 1 firm is engaged in trading in colour television, washing machines, refrigerators, audio -system of B.P.L., Philips, Thomson, Videocon, etc. at 3, Atma Ram Market, Court Road, Saharanpur. The defendant No. 1 through its proprietor, the defendant No. 2 approached the applicant Bank through application dated 12th October, 1998 (Exhibit A -1) for a cash credit (hypothecation) limit facility of Rs. 7.5 lacs and a term loan of Rs. 1.5 lacs. Accordingly the applicant Bank sanctioned/granted the defendant No. 1 the cash credit (hypothecation) limit of Rs. 7.5 lacs and term loan of Rs. 1.5 lacs through advice dated 22nd October, 1998 (Exhibit A -2) against the hypothecation of goods in stock and trade and also against furnishing collateral security for augmentation of its business activities. The defendant Nos. 3 and 4 stood guarantors and assured the applicant Bank re -payment of the dues under the aforesaid credit facilities. To secure the aforesaid credit facilities the defendant No. 3 created equitable mortgage of his immovable properly, the details of which have been mentioned on pages 4 and 5 of the Original Application. The defendant No. 4 stood surety for defendant No. 1 and assured the repayment of the amount due in the cash credit (hypothecation) limit account and term loan account sanctioned to the defendant No. 1 through defendant No. 2 by the applicant Bank and executed and signed letter of guarantee (S -1) on 23rd October, 1998 and 25th March, 2000 (Exhibits A -6 and A -16).
(3.) THE defendant No. 1 through its proprietor, defendant No. 2 approached the applicant Bank for enhancement of cash credit (hypothecation) limit from Rs. 7.5 lacs to Rs. 10 lacs, which was granted vide sanction advice dated 10th March, 2000 (Exhibit A -11) which was availed by the defendants.;

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