BANK OF BARODA Vs. WAGLE ENTERPRISES
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application for recovery of following amounts:
Rs. 12,44,453.09 being dues under cash credit (Hypothecation of Stocks) facility with interest @ 17% p.a. with quarterly rests from the date of filing the original application till full realization;
Rs. 59,56,608.51 being dues under cash credit (Hire Purchase) facility with interest as above.
(2.) The Borrower (defendant No. 1) is a partnership firm. The defendant Nos. 2 and 3 are sued as its partners. The defendant Nos. 5 and 6 are sued since they are members of the partner of defendant No. 2 HUF. The defendant Nos. 3 to 5 are sued as guarantors.
The applicant's case is that defendant No. 1 is its constituent since prior to January 1991 enjoying certain credit facilities. In January 1991, the Bank sanctioned by way of revival 4 facilities from out of which there are outstandings under 2 facilities viz. cash credit (Hypothecation of Stocks) facility of Rs. 10 lakh and cash credit (Hire Purchase) facility of Rs. 45 lakh. The Borrower executed demand promissory notes and usual security documents. The defendant Nos. 3 and 4 gave letter of guarantee. On or about 18.1.1994 a sum of Rs. 10,49,786.63 became due in cash credit (Hypothecation of Stocks) facility. Similarly, an amount of Rs. 46,37,672.76 was due in cash credit (Hire Purchase) facility account. The defendant No. 1 gave letters of acknowledgement of debt.
(3.) PURSUANT to the defendant No. l's request, the applicant reviewed and continued the facilities in January 1996. The defendant No. 1 executed demand promissory notes, Deeds of Hypothecation and usual security documents in lieu thereof. The defendant Nos. 3 and 4 gave letter of guarantee. The defendant No. 1 availed of both facilities in question.;
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