- (1.) Federal Bank Limited has made an application for appointment of a Receiver over the securities mentioned in Schedule 'J' to the petition and also for sale of the securities by private contract or public auction There is also a prayer for injunction against the Receiver. The Respondent No. 1 is Shree Hanuman Jute Mills Limited, an existing company within the meaning of the Companies Act, 1956. The case of the plaintiff bank is that it had granted accommodation to the company to the extent of Rs. 65,00.000/- by way of cash payment with a sub-limit of Rs. 40,00,000/- as and by way of packing credit limit. As a security for this accommodation, the whole of the company's present and future stocks of raw materials, stocks-in-process of manufacture, finished and semi finished goods, stores and all movable plants and machineries including their spares and various other assets including future book debts, bills, money receivables and various other things were hypothecated and charged by way of first charge in favour of the bank. It was agreed that the company will not, so long as the money is remained due to the bank, remove or cause of permit to be removed any of the hypothecated goods. An unattested deed of hypothecation dated December 26, 1983 was executed by the company embodying various terms and conditions on the basis of which the cash credit accommodation was granted.
(2.) By way of collateral security the company executed on demand promissory note for Rs. 65,00,000/- dated December 26, 1983 in favour of the bank or order payable with interest mentioned therein and duly delivered the same to the bank.
(3.) A further accommodation to the tune of Rs. 30,00,000/- was granted by the bank to the company as Foreign Documentary Bill Purchase Facility to enable the company to carry on business of exports of goods manufactured by it. Sri Mahabir Prosad Jalan, Sri Tolaram Jalan and Bajrang Prosad Jalan, the respondent Nos. 2, 3 and 4 guaranteed payment and discharge on demand of all amounts due and payable to the bank by the company in respect of the above mentioned accommodation facilities together with interest and other charges and expenses.;