- (1.) The petitioner no.1 M/s. Siddharth Jewellers Private Limited is a company registered under the Companies Act engaged in the business of selling jewelleries. At the request of he petitioners, State Bank of India, Commercial Branch, Ballygunge, Kolkata sanctioned Metal (Gold) loan for 28 kg. in phases, vide letter dated 2.9.2003. Petitioners no.2 and 3 guaranteed due re-payment of the loan granted to the petitioner no.1 with interest and other miscellaneous charges agreed upon under the agreement executed by the Bank on 29.9.2003. Further on the request made by the petitioner no.1, State Bank of India, Opera House Branch, Mumbai also sanctioned Metal (Gold) Loan to the extent of 25 kg. in phases to the petitioner no.1. There also petitioners no.2 and 3 stood guarantors.
(2.) Under the agreement, the petitioner was permitted to receive from the Bank Gold as per its requirement to the maximum sanctioned limit for manufacturing ornaments and selling them and pay back the money and interest at the agreed rate on the monetary value of the gold till the entire money (monetary value of the gold) is paid back.
(3.) The metal loan scheme envisages loan in Metal (Gold) to eligible domestic Jewellers. Such loan provides certain advantages to the jewellers in the manner that they are able to obtain gold without affecting the payment immediately. The interest rate is also lower than that applicable to loans under the normal scheme for exporter as also to the domestic jewellers.;