1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. SUIT NO.2979 OF 1997 Andhra Bank ..Plaintiff. Vs. Ankur Synthetics and others ..Defendants. .... Mr. Manish Acharya i/b M/s. Pandya Gandhi & Co. for the Plaintiff. None for the Defendants. .... CORAM : DR. D.Y. CHANDRACHUD, J. 24th August, 2009. P.C. : 1. The suit has been instituted for the recovery of monies lent and advanced. In 1993 the Plaintiff on the request of the Second Defendant granted an inland letter of credit facility to the First Defendant in the amount of Rs. 3 lacs. The facility was extended in March 1994 to Rs.5 lacs. In consideration thereof the First and Second Defendants executed an agreement dated 8th March, 1994 by which the First Defendant hypothecated all its movable property to the Plaintiff. Defendants 2 to 4 executed a deed of guarantee dated 15th March, 1994. On 7th March, 2 1994 the Third Defendant deposited the title deeds of a residential flat at Vasai Road with an intent to create an equitable mortgage in favour of the Plaintiff. The Third Defendant executed a power of attorney in favour of the Plaintiff. Pursuant to applications made by the First Defendant the Plaintiff duly opened irrevocable letters of credit in favour of the beneficiary named in the applications; negotiated documents of title in respect of goods sold to the First Defendant and made payments under the letters of credit from time to time. The Plaintiff has maintained an account in respect of the transactions in the usual course of business. 2. Between 22nd August and 13th September, 1994 the Plaintiff opened irrevocable letters of credit in favour of one M/s. Apurva Creations and duly made payments of six bills aggregating to Rs.3 lacs. The First and Second Defendants have failed to make payments to the Plaintiff. The case of the Plaintiff is that the beneficiary was a proprietary concern of the Fourth Defendant and that the Second Defendant in collusion with the Fourth Defendant has played a fraud on the Plaintiff, since as a matter of fact no goods were supplied by the Third Defendant to Defendants 1 3 and 2. 3. The Defendants have been served with the writ of summons. No written statement has been filed. The Plaintiffs have relied upon an affidavit in lieu of the examination in chief of their Senior Manager who has reiterated the facts and circumstances to which a reference has been made earlier. A compilation of the original documents has been filed. The claim has been duly proved. The suit shall accordingly stand decreed in terms of prayer clauses (a) to (d) 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 or realization. *****