UNITED COMMERCIAL BANK Vs. PREMIER OILS LIMITED

JUDGEMENT

(1.) THE applicant Bank did institute Suit No. 1157 of 1987 before the Hon'ble High Court at Calcutta at its Ordinary Original Civil Jurisdiction by way of presenting one plaint in connection therewith which was in fact accompanied by the eighteen exhibits. THE date of presentation of the plaint in connection with the above suit was November 27, 1987. THE applicant Bank did institute the said suit against the four defendants for the purpose of recovery of an amount not less than Rs. 39,32,248.62 p. inclusive of interest and also for interest from October 1, 1987 till filing of the suit, interim interest and interest on judgment at 16.5% per annum. Out of such four impleaded defendants, the defendant No. 1 is a Company incorporated under the Companies Act, 1956 and is also engaged in carrying on business as the manufacturer and processor or a dealer in oil and oil seeds. THE said defendant No. 1 was enjoying several credit facilities from the Burra Bazaar Branch of the applicant Bank which were a cash credit (hypothecation account) being Purchase Account, Cash Credit (book debts) and a frozen term loan account.

(2.) From point of time, the day like December 4, 1973 is the starting point of enjoyment and availing by the first defendant of the credit facilities with the applicant Bank which are of the maximum limit or Rs. 10 lakhs (Rupees Ten lakhs) on terms and conditions contained in a set of Banking documents dated December 4, 1973 executed "by and/or on behalf of the first defendant". The enjoyment of the above credit facilities would be evidenced, if one considers minutely the Exhibits '1' and '2' of the evidence-on-affidavit filed on May 26, 2000 by Mr. D. Balakrishnan, the Deputy Chief Officer (Inspection & Vigilance Department), Zonal Office, Mumbai. The Exhibit '1' being the balance confirmation confirmed on April 20, 1974 has been meant for an amount of Rs. 6,28,110.29 p. The said balance confirmation was meant by and on behalf of the said defendant company in the form of Rs. 1 lakh (Rupees one lakh) dated the above day and date after being addressed to the Manager, Burra Bazaar Branch of the United Commercial Bank.

(3.) THE third phase of continuation of the availment by the defendant No. 1 of the credit facilities can be witnessed, if one takes into consideration the further execution of the following four documents, namely--