1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. SUIT NO.97 OF 2003 Bank of India. ...Plaintiff. Versus M/s.Sun-N-Star Exports & Ors. ...Defendants. ....... Mr. Biju N.Jacob with Mr.O.A. Das for the Plaintiff. None for the Defendants. ...... CORAM : DR. D.Y. CHANDRACHUD, J. September 17, 2009. P.C.: The suit has been instituted for the recovery of moneys due on account of a cash credit facility and demand loan extended to the Defendants. The First Defendant is a partnership firm of which the Second to Fourth Defendants are partners. The Fifth Defendant to the suit is a guarantor. The Plaintiff extended a cash credit facility against hypothecation of book debts, in consideration whereof Defendant Nos.1 to 4 executed a Demand Promissory Note in the amount of Rs. 20,000/- dated 20th October 1987, a letter of continuing security, a letter of lien and set off and charge and hypothecation of book debts. The extent of the facility was enhanced to Rs.50,000/- on 15th October 2 1994 against a fresh Demand Promissory Note, letter of continuing security and supplementary agreement of hypothecation. The Fifth Defendant executed a guarantee on 16th August 1999. Defendant Nos.1 to 4 have issued letters of acknowledgement, the last being on 11th October 1999. The Plaintiff had also sanctioned a demand loan to the First Defendant in the amount of Rs.1 lakh on 28th August 1995 against execution of a Demand Promissory Note, a letter of continuing security and a letter of lien and set off. The Fifth Defendant also executed a personal guarantee. The loan was availed of by the First Defendant. Defendant Nos.1 to 5 executed an acknowledgement of debt on 11th October 1999. 2. In 1997, the Plaintiff had also granted a temporary overdraft limit in the cash credit account to the extent of Rs. 1.04 lakhs during 17th January 1996 to 16th March 1996. 3. The Defendants have failed to pay the outstandings. An Advocate's notice was addressed on 27th September 2002. 3 4. The Defendants have been served with the writ of summons, but have failed to enter appearance. In the circumstances, the pleadings have not been controverted. The Plaintiff has filed an affidavit of evidence of an authorised officer and a compilation of the original documents. The statement of accounts has been duly certified. The claim of the Plaintiff has been duly proved on the basis of the evidence on record. The suit shall stand decreed in terms of prayer clauses (a), (b) and (f) with the modification that the Plaintiff will be entitled to interest at the rate of 9% p.a. from the date of the institution of the suit, until payment or realization. Refund of the Court fee, if any, as per the rules. ....