- (1.) Sri Ramesh Singh, Advocate has put in appearance on behalf of petitioner-Bank and learned Standing Counsel for respondents-1, 2, 3 and 6.
(2.) Punjab National Bank (hereinafter referred to as 'Bank') is a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings), 1970. It advanced certain credit facilities to one M/s Luxmi Industrial & Trading Company Limited (hereinafter referred to as 'respondent-4') which included Cash Credit Limit upto Rs.10 lacs; Cash Credit Hypothecation Limit upto Rs. 4 lacs and documentary D.D. Limit upto Rs.5 lacs. Limit of aforesaid facilities subsequently was extended from time to time. Two Directors of respondent-4, including its Managing Director executed guarantee deed to secure repayment of amount of aforesaid credit facilities in case there is any default on the part of respondent-4. There was default on the part of respondent-4 in repayment of dues, hence Bank filed Suit No.20 of 1983 for recovery of Rs.57,27,575.44/- with pendente lite interest.
(3.) Trial Court, vide order dated 4th August,1983, appointed Advocate Commissioner as Receiver of respondent-4, company and also to sell Khair wood lying in premises to avoid damage to the same. Advocate Commissioner sold Khair wood through auction for consideration of Rs.7,66,620/- and deposited the same in Trial Court in the shape of Fixed Deposit Receipt in the name of respondent-4. Original Suit No. 20 of 1983 was decreed, vide judgement and decree dated 31.5.1993, against respondent-4, for recovery of aforesaid mentioned amount along with interest at the rate of 12 per cent per annum. Trial Court did not pass any decree against guarantors, namely, Kishori Lal Seth and Nand Kishore Seth.;