IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION SUIT NO. 2557 OF 1995 SUIT NO. 2557 OF 1995 SUIT NO. 2557 OF 1995 Central Bank of India ... Plaintiffs Central Bank of India ... Plaintiffs Central Bank of India ... Plaintiffs Vs. Vs. Vs. M/s. Om Enterprises & Ors. ... Defendants M/s. Om Enterprises & Ors. ... Defendants M/s. Om Enterprises & Ors. ... Defendants Mr. Amit Jagoo i/b. N.C.Dalal & Co. for Plaintiffs. Mr. Amit Jagoo i/b. N.C.Dalal & Co. for Plaintiffs. Mr. Amit Jagoo i/b. N.C.Dalal & Co. for Plaintiffs. CORAM CORAM CORAM: S.K.SHAH,J. S.K.SHAH,J. S.K.SHAH,J. DATE DATE DATE : 4th August,2005. 4th August,2005. 4th August,2005. P.C. P.C. P.C. 1. This is an undefended suit. The Plaintiffs have 1. This is an undefended suit. The Plaintiffs have 1. This is an undefended suit. The Plaintiffs have filed the documents such as Demand Promissory Note filed the documents such as Demand Promissory Note filed the documents such as Demand Promissory Note dated 18.8.1989, letter of continuity dated 18.8.1989, dated 18.8.1989, letter of continuity dated 18.8.1989, dated 18.8.1989, letter of continuity dated 18.8.1989, agreement of hypothecation of the same date and the agreement of hypothecation of the same date and the agreement of hypothecation of the same date and the acknowledgment of Debts and Securities dated 3.8.1992. acknowledgment of Debts and Securities dated 3.8.1992. acknowledgment of Debts and Securities dated 3.8.1992. The Defendant No.1 is a partnership firm carrying on The Defendant No.1 is a partnership firm carrying on The Defendant No.1 is a partnership firm carrying on business of manufacturing of grinders, etc. The business of manufacturing of grinders, etc. The business of manufacturing of grinders, etc. The Defendants Nos. 2, 4 and 5 are partners of the Defendants Nos. 2, 4 and 5 are partners of the Defendants Nos. 2, 4 and 5 are partners of the defendant No.1 firm. The Defendant no.3 is the defendant No.1 firm. The Defendant no.3 is the defendant No.1 firm. The Defendant no.3 is the guarantor. The Defendant No.1 had taken cash credit guarantor. The Defendant No.1 had taken cash credit guarantor. The Defendant No.1 had taken cash credit facility from the Plaintiff-Bank and executed Demand facility from the Plaintiff-Bank and executed Demand facility from the Plaintiff-Bank and executed Demand Promissory Note for a sum of Rs.5 lakhs agreeing to Promissory Note for a sum of Rs.5 lakhs agreeing to Promissory Note for a sum of Rs.5 lakhs agreeing to pay interest at 16.5% per annum with quarterly rests. pay interest at 16.5% per annum with quarterly rests. pay interest at 16.5% per annum with quarterly rests. the Defendant No.1 and the patners had hypothecated the Defendant No.1 and the patners had hypothecated the Defendant No.1 and the patners had hypothecated with the Plaintiff the movable property described in with the Plaintiff the movable property described in with the Plaintiff the movable property described in the Hypothecation Deed. he defendant No.1 firm had the Hypothecation Deed. he defendant No.1 firm had the Hypothecation Deed. he defendant No.1 firm had enjoyed the Cash Credit Facility and had withdrawn enjoyed the Cash Credit Facility and had withdrawn enjoyed the Cash Credit Facility and had withdrawn amounts from time to time and had deposited the amounts from time to time and had deposited the amounts from time to time and had deposited the amounts from time to time. The amount which remained amounts from time to time. The amount which remained amounts from time to time. The amount which remained outstanding from the Defendants was Rs.1,46,941.84. outstanding from the Defendants was Rs.1,46,941.84. outstanding from the Defendants was Rs.1,46,941.84. The Plaintiffs have filed the suit for recovery of the The Plaintiffs have filed the suit for recovery of the The Plaintiffs have filed the suit for recovery of the said amount along with interest amount of Rs.1,03,252 said amount along with interest amount of Rs.1,03,252 said amount along with interest amount of Rs.1,03,252 totalling Rs.2,50,193.84 ps. with future interest. totalling Rs.2,50,193.84 ps. with future interest. totalling Rs.2,50,193.84 ps. with future interest. The claim is established from the pleadings and the The claim is established from the pleadings and the The claim is established from the pleadings and the documents produced by the Plaintiffs. documents produced by the Plaintiffs. documents produced by the Plaintiffs. 2. The Suit is, therefore, decreed. The Defendants 2. The Suit is, therefore, decreed. The Defendants 2. The Suit is, therefore, decreed. The Defendants Nos. 1 to 5 shall jointly and severally pay to the Nos. 1 to 5 shall jointly and severally pay to the Nos. 1 to 5 shall jointly and severally pay to the Plaintiffs Rs.2,50,193.84 ps. with interest thereon Plaintiffs Rs.2,50,193.84 ps. with interest thereon Plaintiffs Rs.2,50,193.84 ps. with interest thereon at the rate of 16.5% per annum from the date of the at the rate of 16.5% per annum from the date of the at the rate of 16.5% per annum from the date of the suit till full payment with costs. suit till full payment with costs. suit till full payment with costs. Decree be drawn accordingly. Decree be drawn accordingly. Decree be drawn accordingly. --- --- --- (S.K.SHAH,J.) (S.K.SHAH,J.) (S.K.SHAH,J.)