O P ARORA Vs. SYNDICATE BANK

JUDGEMENT

(1.) THE 1st respondent-Syndicate Bank (hereinafter referred to as the 'respondent-Bank') filed O.A. 33/98 before the Debts Recovery Tribunal, Delhi (hereinafter referred to as 'the DRT') against, (1) M/s. VSA Ledermode; (2) Mr. O.P. Arora (hereinafter referred to as 'the appellant/2nd defendant'); and (3) Mr. Vishal Arora for the recovery of Rs. 4,19,80,709/- with subsequent interest and costs jointly and severally from them. THE respondent-Bank also prayed that in the event of their failure to pay the amount, the hypothecated goods, machinery and the mortgaged property be sold for realisation of the amount. THE respondent-Bank further prayed for the attachment before judgment of the mortgaged property. According to the respondent-Bank, the 1st defendant is a firm, of which defendants 2 and 3 are partners, engaged in the business of import and export of readymade leather garments, and for that business the respondent-Bank granted the loan facilities as indicated in the O.A., for which the defendants had executed the documents as mentioned in the O.A. including a letter mortgaging the property. According to the plaintiff, the defendants, who availed the facilities, did not adhere to financial discipline and after application of periodical interest from time-to-time a sum of Rs. 4,19,80,709/- is due as on date of suit with interest up to 8.1.1998. THE respondent-Bank also has averred that the appellant/2nd defendant has created a mortgage over the property bearing No. E-1 /13, Vasant Vihar, New Delhi.

(2.) On notice/summons the appellant/2nd defendant entered appearance and moved an application for directing the Bank to furnish information/documents since, according to him, in the absence of such information/documents he will not be in a position to file appropriate reply to contest the claim of the Bank.

(3.) HE also noticed the following terms and conditions :