1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. SUMMARY SUIT NO.452 OF 2003 Bank of Baroda ..Plaintiff. Vs. Jaya Communication Center and others ..Defendants. .... Ms Swati M. Pokale i/b Anant B. Shinde for the Plaintiff. None for the Defendants. .... CORAM : DR. D.Y. CHANDRACHUD, J. 1st October, 2009. P.C. : 1. This is a suit instituted by the Bank for the recovery of monies due and outstanding. The First Defendant is a proprietary concern of which the Second Defendant is a proprietor. The Third and Fourth Defendants have been sued as guarantors. On 1st July, 1997, the Plaintiff sanctioned to the First and Second Defendants a cash credit (hypothecation of book debts) facility in the amount of Rs.1 lac. The First Defendant executed a demand promissory note and letter of continuing security dated 1st July, 1997. The First Defendant executed a hypothecation agreement. The 2 Third and Fourth Defendants executed guarantees in favour of the Plaintiff. On the request of the First and Second Defendants the Plaintiff issued a bank guarantee of Rs.2 lacs on 6th March, 1998 in favour of MTNL towards security deposit. A counter indemnity was executed by the First and Second Defendants. On 30th November, 1999 the bank guarantee was invoked by its beneficiary on the failure of the First and Second Defendants to pay their dues. The amount of a guarantee was paid by the Plaintiff to the beneficiary under a letter dated 4th December, 1999. On 3rd December, 1999 the Defendants acknowledged their liabilities to the extent of Rs.1,81,623.37 as on 2nd December, 1999. The amount due has not been paid despite an advocate’s notice of demand dated 20th June and 6th October, 2000. On receipt of a further letter dated 5th October, 2002 the First and Second Defendants executed a demand promissory note on 7th October, 2002 in respect of the balance outstanding under the bank guarantee. The Plaintiff has maintained a statement of account in the usual course of business pertaining to the transactions with the Defendants. 3 2. The Defendants have been served with the writ of summons, but have not entered appearance. In the circumstances, the averments contained in the Plaint have not been controverted. The Plaintiffs have relied upon an affidavit of their Senior Manager and a compilation of the original documents. The compilation contains the documents executed by the Defendants and the statement of account pertaining to the Defendants maintained in the usual course of business and duly certified. The claim is proved. The suit shall accordingly stand decreed in terms of prayer clauses (1) and (2) with the modification that the Plaintiff will be entitled to interest at the rate of 9% per annum from the date of the suit until payment and/or realization. *****