- (1.) This suit was filed by the Eastern Bank Ltd. on 3rd Oct., 1969 for a decree for a sum of Rs. 7,51,718.96p and the sale of the securities referred to in the schedules annexed to the plaint and the application of the sale proceeds towards the pro tanto satisfaction of Bank's claim against the defendant 1 as the principal debtor and defendants 2, 3, 4 and 5 as the guarantors in consideration of the loans granted or to be granted by the plaintiff Bank to the defendant 1 for which it is claimed in the plaint, defendants 2, 3, 4 and Sri D.N. Mukherjee and original defendant 5 stood as sureties.
(2.) The plaintiff Bank's case is that the defendant 1 had a current account with overdraft facilities with the condition that such loans would carry interest at the rate of 10% per annum. The plaintiff's (hereinafter to be referred to as Bank) case is that as security for the advances made by the bank in the said overdraft account the defendant 1 deposited and placed with the plaintiff diverse goods and merchandise which the plaintiff held and possessed subject to the terms and conditions contained in the letter of pledge dt. 18th Dec., 1967.
(3.) The Bank's case is that the defendants 2,3,4 and the original defendant 5, executed a letter of guarantee on or about 26th Aug.,1964 in consideration of the loans granted or to be granted by the Bank to the defendant -The said question has been pleaded in Para (3) of the plaint and in Para (h) of the plaint : the guarantee was said to be continuing guarantee. 3A. It has been pleaded in Para 7 of the plaint that between 10th Nov., 1966 and 20th Nov., 1966 the plaintiffs advanced five loans to the defendant 1 aggregating to Rs. 2,05,449/- against documents of title to goods alleged to have been sold by the defendant 1 to diverse purchasers and bills of exchange drawn by the defendant 1 on the said purchase for the price of the said goods.;