STATE BANK OF INDIA Vs. SOLEX FASTENERS PVT LTD

JUDGEMENT

(1.) THE claim application filed on October 15, 1996 by the applicant Bank against the six defendants has been, after the exhaust of all the procedural steps necessary for the disposal of a summary case like this, taken up by this Tribunal for its consideration and adjudication of the issue that has necessarily been framed in view of a set of the relevant facts and circumstances directly involved therein whether the applicant Bank has been entitled to the specific relief like Rs. 55,24,929.88 p. together with further interest at the rate of sixteen per cent per annum in respect of Cash Credit (Bills) Account and Old Stock Cash Credit Account from September 26, 1996 till realisation; to be realised and recovered from the defendant Nos. 1 to 5. It may be necessarily asked that what are the reasons being responsible for keeping the defendant No. 6 outside the ambit of the above liability, when the aforesaid issue has been framed for a decision to be given thereupon. In reply, the following may be said:

(2.) In the said written statement, particularly at para-16, the said defendant has categorically submitted that the applicant Bank has failed to make out the prima facie case in the said application and as such the same is liable to be dismissed with cost against the said defendant. Not only that, the said defendant has also raised a claim as of right in its favour that it is entitled to sell the mortgaged and hypothecated assets of the defendant No. by virtue of being the first charge holder. Such claim has been specifically set out at paragraph 15 of the written statement of itself.

(3.) THEREAFTER, in furtherance of the said agreement and in connection with a rehabilitation package scheme, the applicant Bank was pleased, on October 7, 1988, to sanction the Credit facility in a Stock Cash Credit Account, Clean Cash Credit Account, Clean Term Loan (Funded Interest) Account and Working Capital Term Loan (Rehabilitation) Account to the defendant No. 1; and the said defendant has availed itself of the said credit facilities against the hypothecation of stocks, raw materials, finished goods, goods under process, pledging of plant and machinery, hypothecation of book debts, both present and future. The said loan secured by the defendant No. 1 has also been founded on the personal guarantee of the defendant Nos. 2 to 5.