PUNJAB NATIONAL BANK Vs. TARUN CASTING PVT. LTD. AND ORS.
LAWS(DR)-2006-5-15
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on May 10,2006

PUNJAB NATIONAL BANK Appellant
VERSUS
Tarun Casting Pvt. Ltd. And Ors. Respondents

JUDGEMENT

K.L.Sharma, Presiding Officer - (1.) APPLICANT Bank has filed this Original Application against the defendants for recovery of a total sum of Rs. 2,39,82,330.45 (Rupees two crore thirty -nine lakh eighty -two thousand three hundred thirty and paise forty -five only) together with pendente lite and future interest @ 16.32% per annum with quarterly resets in this Tribunal on 24th August, 1990.
(2.) BRIEFLY stated facts of the case are that defendant No. 1 is the private limited company and defendant Nos. 2 and 6 are its directors and also guarantors in their individual capacity. Defendant Nos. 7 to 9 are also guarantors. While defendant Nos. 2, 3 and 6 are also mortgagers in their personal capacity along with defendant No. 1. Defendant No. 1 through its director i.e. defendant No. 2 approached the applicant Bank with a request for the sanction of various credit facilities for running their business for manufacturing of alloy steel ingot, etc. The applicant Ban. V granted/sanctioned C.C. (H) limit of Rs. 23.50 lakh, term loan facility of Rs. 75.0 lakh, C.C. (B.D.) facility of Rs. 23.50 lakh. L.G. facility of Rs. 10 lakh. C.C. (H) Limit of Rs. 23.50 lakh. In order to avail the aforesaid limit, defendant No. 2 as director of defendant No. 1, signed the cash credit hypothecation agreement for Rs. 23.50 lakh on 20th December, 1993, details have been given in para 5(F) of the plaint. Term Loan facility of Rs. 75.0 lakh. In consideration of grant/sanction of term loan for Rs. 75.0 lakh, defendant No. 2 as director of defendant No. 1 signed the term loan hypothecation agreement on 3rd September, 1993 and agreed to repay the said loan in quarterly installments of Rs. 2.70 lakh, details have been given in para 5(G) of the plaint. C.C. (B.D.) facility of Rs. 23.50 Lakh Defendant No. 2 as director of defendant No. 1 signed the agreement of hypothecation of book debt for Rs. 23.50 lakh on 20th December. 1993 and availed the limit with C.C. (B.D.). In consideration of grant/sanction of the aforesaid C.C. (H) limit. C.C. (B.D.), term loan and other facility to defendant No. 1, defendant Nos. 2 and 9 except defendant No. 6 stood as guarantor and signed the agreement of guarantee on 3rd September, 1993 for a total sum of Rs. 123 lakh. Moreover, defendant Nos. 2.3 and 6 also created equitable mortgage on 3rd September, 1993 with applicant Bank by deposit of title deeds in respect of their immovable property at B -II/218, Band Gali, Barnala (Punjab). They further executed a letter of intent for creation of equitable mortgage by deposit of title deed and deposit of title deeds were acknowledged by the applicant Bank. Details of mortgage have been given in para 5(1) of the plaint. Defendant No. 1 also created equitable mortgage in respect of property No. C -781, Industrial Area, Phase -II, Bhiwadi and defendant No. 1 through defendant No. 2, signed the letter of intent and deposited title deeds in respect of aforesaid property as a collateral security for the loan; availed by defendant No. 1 which was acknowledged by the Bank vide letter dated 3rd September, 1993. Details of the mortgage; have been given in para 5(J) of f the plaint.
(3.) DEFENDANT No. 1 further requested for term loan facility of Rs. 44 lakh the request was considered by the applicant Bank and said facility was granted/sanctioned to them. Defendant No. 2 as director of defendant No. 1 signed the term loan hypothecation agreement on 13th February, 1995 and agreed to pay the said loan in quarterly instalment of Rs. 2.20 lakh, details have been given in para 5(K) of the plaint. Defendant Nos. 2 to 9 except defendant No. 6 signed the agreement of guarantee on 13th February, 1995 for total sum of Rs. 212 lakh sanctioned to defendants. Defendant No. 1 through defendant No. 2 also signed the agreement of first charge on block assets of Bhiwadi factory of defendant No. 1 as per the Schedule on 15th February., 1995.;


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