VENKATESHWARA GARMENTS AND EXPORTS Vs. DENA BANK

JUDGEMENT

(1.) THIS Misc. appeal is filed by the appellants/original defendants being aggrieved by the order dated 4.12.2003 passed by the learned Presiding Officer of the Debts Recovery Tribunal, Nagpur in Interlocutory Application No. 189/2003 in Original Application No. 341/2001. By the impugned order, the learned Presiding Officer rejected the application made the appellants, wherein they had sought directions from the Tribunal to the applicant Bank to take possession of the hypothecated goods lying at M/s. Shivan Enterprises, Gangapur Road, Nagpur and to sell the same and adjust the sale proceeds thereof towards the loan account of defendant No. 1 namely M/s. Venkateshwara Garments and Exports.

(2.) Few facts, which are required to be staled are as follows:

(3.) THE learned Presiding Officer after hearing both the sides and after perusing the records, found out that all the loan documents were executed by the defendant Nos. 1 and 2 in favour of the applicant Bank, that the statement of account also reveals that the defendant No. 1 firm had utilized the loan amount for its business and that defendant No. 2 had also created equitable mortgage in respect of the agricultural land situated at Gondkhari, Tahsil Kalmeshwar, District Nagpur. THE record also reveals that on 10.10.1995, the proprietress Mrs. Rashmi A. Jainarayan of the defendant No. 1 firm had also addressed a letter to the Chief Manager of the applicant Bank requesting for sanction of temporary ad hoc limit up to Rs. 4.6 lacs and that in the said letter there was no whisper that entire loan amount was utilized by the son of Mr. Deepak Patel, the then Chief Manager of the applicant Bank and that for the first time, the defendant had come up with this version.