O.A. No. 2394 of 1999. Case: Bank of India Vs Pan Afric Chemical Industries and Ors.. Mumbai Debt Recovery Tribunals

Case Number:O.A. No. 2394 of 1999
Party Name:Bank of India Vs Pan Afric Chemical Industries and Ors.
Counsel:For Appellant: Minesh K. Shah, Adv., i/b., Little & Co. and For Respondents: B.B. Saraf, Adv., i/b., Manilal Kher Ambalal & Co.
Judges:K.J. Paratwar, Presiding Officer
Issue:Indian Partnership Act, 1932 - Sections 32(2) and 32(3)
Citation:II (2006) BC 78
Judgement Date:May 27, 2005
Court:Mumbai Debt Recovery Tribunals
 
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Judgment:

K.J. Paratwar, Presiding Officer

  1. This is an application for recovery of:

    Rs. 14,83,050.82 being dues under Cash Credit (Hypothecation of Stocks) Facility with further interest @ 16.75% p.a. with quarterly rests from the date of the filing of the O.A. till payment and/or full realisation.

    Rs. 3,36,085.54 being dues under Cash Credit (Pledge of Stocks) Facility with further interest @ 16.75% p.a. with quarterly rests from the date of the filing of the O.A. till payment and/or full realisation.

    Rs. 15,19,880.26 being dues under Bill Discounting Facility with further interest @ 16.75% p.a. with monthly rests from the date of the filing of the O.A. till payment and/ or full realisation.

    Apart from the aforesaid three amounts, the applicant has sought declaration that a sum of Rs. 3,28,892.56 (from out of proceeds of fixed deposit of the defendant No. 2 with the Bank) has been appropriated towards its claim in respect of Cash Credit (Hypothecation of Book Debts). Alternate prayer is for recovery of said amount in the event of such declaration not being given.

  2. The defendant No. 1 is a Partnership Firm of which the defendant Nos. 2, 3 and the Deceased Bharmal Rajshi Shah (defendant Nos. 5 and 5 being his Legal Representatives) were partners upto 1.1.1985. On or about that date while the defendant No. 3 retired as Partner, the 4th defendant entered the Partnership Firm. The applicant has stated that by Deed of Retirement dated 29.12.1984, the 4th defendant has taken over all the assets and liabilities of the 1st defendant w.e.f. 1.1.1985.

  3. The applicant's case is that in or around October 1979, Cash Credit (Hypothecation of Stock) Facility of Rs. 2.50 lacs was sanctioned to the Partnership Firm. There was enhancement in the same by Rs. 1 lac in or around May 1980, by Rs. 2 lacs in or around August 1980, by further sum of Rs. 2.50 lacs in September 1981, by another amount of Rs. 1.50 lacs in July 1982. After induction of the defendant No. 4, security documents were executed on or about 8th January, 1985 in respect of the aggregate sum of Rs. 9.50 lacs. In or around August 1980, Cash Credit (Hypothecation of Book Debts) Facility of Rs. 1 lac was sanctioned in which there was enhancement by Rs. 1 lac in October 1982. In that respect also fresh security documents in respect of aggregate sum of Rs. 2 lacs were executed on or about 8th January, 1985. The third facility viz. Cash Credit (Pledge of Stocks) Facility of Rs. 3 lacs was...

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