- (1.) The plaintiff seeks to recover damages from the defendant in the suit.
(2.) The plaintiff was a constituent of the first defendant. The plaintiff had approached the first defendant for credit facilities to set up a project. Prior to the project being approved of, the first defendant had granted ad hoc credit facilities to the plaintiff. The first defendant had considered the project report of the plaintiff and had issued a sanction letter dated December 19, 1991. By the sanction letter dated December 19, 1991 the plaintiff had agreed to sanction four heads of credit facilities of varying amounts. The sanction letter provides various terms and conditions to be observed by the plaintiff. One of the terms and conditions of sanction letter is furnishing of collateral securities by the plaintiff. According to the plaintiff, it adhered to the terms and conditions of the sanction letter and had offered all collateral securities required of it by the sanction letter. In fact, according to the plaintiff, it provided additional securities than was required of them under the sanction letter. In spite of such securities being given, the plaintiff did not disburse the credit facilities sanctioned by the letter dated December 19, 1991.
(3.) The plaintiff claims that by reason of non-disbursement of the credit facilities agreed under the letter of sanction dated December 19, 1991, the first defendant had caused loss and damages to the plaintiff which the first defendant must compensate. The plaintiff claims to have taken steps for the purpose of setting up of the project and had made diverse expenditures with regard thereto. The plaintiff had lost expected profits on the project and had suffered damages on account of loss of goodwill.;