KUNDAN RICE AND GENERAL MILLS Vs. BANK OF INDIA
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THE two appellants who have challenged the final order dated 24th October, 1996 in Original Application 36/96 (Old No. 8/94) were defendant Nos. 1 and 2 in the original application, THE appellant No. 2 is the proprietor of the appellant No. 1.
(2.) The suit is suit was filed on 6th January, 1994 by Bank of India (respondent No. 1 herein) in the Court of Additional Senior Sub-Judge, Moga for the recovery of Rs. 41,01,522/- with pendente lite and future interest as also costs. The respondent Nos. 2 and 3 herein (defendant Nos. 3 and 4) were said to be guarantors whereas the respondent No. 4 herein (defendant No. 5) purchased the property from the defendant No. 2, which had been equitably mortgaged with the respondent No. 1-Bank herein by the defendant No. 2 (appellant No. 2) for availing of certain Cash Credit Hypothecation Limit, initially for Rs. 15 lacs on 8th September, 1986. It was subsequently first enhanced to Rs. 25 lacs and then to Rs. 35 lacs on 20th October, 1987 and 24th October, 1988 respectively.
The appellant No. 2 (defendant No. 2) allegedly transferred the mortgaged property inter alia to the present respondent No. 4/defendant No. 5. Balance confirmation letters were given by the appellant No. 2 and an amount of Rs. 41,01,522/- was allegedly due on the date of filing of the suit (6th January, 1994) when the account of the appellants became NPA. On the creation of D.R.T. at Jaipur the case was transferred to D.R.T., Jaipur. The D.R.T. decreed the suit for recovery of Rs. 41,01,522/- along with costs, pendente lite and future interest from the date of filing of the suit, i.e. 6th January, 1994, till realization @ 18.25% per annum. As per the order, the Bank could recover the amount by way of sale of hypothecated goods and mortgaged immovable properties including the land sold to the present respondent No. 4/defendant No. 5.
(3.) IN their written statement, the present appellants admitted advancing of Rs. 15 lacs and 25 lacs and execution of documents on 8th September, 1986 and 20th October, 1987. Rest of the allegations were denied.;
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