KOTAK MAHINDRA BANK LTD Vs. ORIENT SHIP AGENCY PVT LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THE borrower (defendant No. 1) and the guarantors (defendant Nos. 2 to 5) are sued in this original application by the assignee from Sumitomo Mitsui Banking Corporation (for short 'SMBC') for recovery of Rs. 4,49,22,847.63 with interest @ 17.80% p.a. from the date of filing the original application till full realization.
(2.) The defendant No. 1 was constituent of SMBC from whom defendant No. 1 had got in October 1993 overdraft of Rs. 1.68 crores. There was enhancement in the same to Rs. 3 crores on or about 29.12.1994, to Rs. 5 crores on or about 9.2.1996 and finally Rs. 7 crores on or about 3.3.1997. The overdrafts were sanctioned on guarantee by defendant Nos. 2 to 5 and security of hypothecated machineries.
The defendant No. 1 executed usual security documents from time to time. The defendant No. 1 also executed agreement of hypothecation which was registered with ROC. The defendant Nos. 2 to 5 gave letters of guarantee. The defendant No. 1 availed of the facility and made certain repayments. It had from time to time on 4.11.1999, 25.6.2000 and 25.2.2002 executed letters of acknowledgement in respect of the debtors. On 25.1.2003, the defendant No. 1 also executed fresh demand promissory notes in respect of the then outstandings. The defendant No. 1 however failed in making payment despite repeated demands.
(3.) THE applicant further contends that under deed of assignment dated 24.9.2004, SMBC unconditionally and absolutely assigned to the applicant's all rights, title and interest, etc. in favour of the applicant upon the basis of which the applicant is entitled to recover from the defendants all those monies payable to SMBC. This original application is filed for the recovery of the outstandings.;
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