- (1.) This writ petition under Article 226/227 of the Constitution of India has been filed by three petitioners assailing order and judgment dated 16.10.2009 passed by Debts Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the "DRAT") allowing Appeal No. R862 of 2007 of respondent no. 3, State Bank of Indore branch at P.Y. Road, Indore (Madhya Pradesh).
(2.) The factual matrix, in brief, for better understanding of dispute in question may be stated as under.
(3.) The petitioner's no. 1 and 2 are brothers and petitioner no. 3 is the son of petitioner no. 1. M/s Raj Kumar Mills Limited, (hereinafter referred to as the "Company") a Company incorporated under the Indian Companies Act, 1956 having registered office at 7 New Dewas Road, Indore (Madhya Pradesh) applied for financial assistance from respondent no. 3 (hereinafter referred to as the "Bank"). The petitioners were Directors of the Company. The petitioners as well as the State of Madhya Pradesh through Secretary, commerce & Industries Department (respondent no. 5) executed guarantee agreement against the credit facilities extended to Company by the Bank. According to Bank the Company was sanctioned Demand Loan I of Rs. 56.91 lacs, Demand Loan II of Rs. 40 lacs, Cash Credit Pledge Limit of Rs. 80 lacs, Medium Term Loan of Rs. 106 lacs, Demand Loan (Restart) of Rs. 14 lacs and Demand Loan (Bonus) of Rs. 15.58 lacs. The Company executed requisite loan documents with the Bank. The State of Madhya Pradesh executed deed of guarantee to secure credit facilities granted to Company. The Company also created equitable mortgage over its immoveable properties as a further security so as to secure cash credit pledge limit of Rs. 80 lacs and demand loan of Rs. 40 lacs. Details of such properties was given in para 5(v) of the application filed by Bank before Debts Recovery Tribunal (hereinafter referred to the "Tribunal").;