JUDGMENT - M.L. PENDSE, C.J.:---The State Bank of India is a Banking Company incorporated under the State Bank of India Act, 1955 and carries on business all over the country through its various branches. The respondent No. 1 is a Private Limited Company and is owner of Industrial gala bearing No. 116, Shiv Shakti Industrial Estate, Ghatkopar, Bombay. The respondent No. 1 sought diverse credit facilities from the appellant Bank and the facilities were granted on November 18, 1991. The facilities granted were :

(a) Demand cash credit against hypothecation of stocks for Rs. 50 Lakhs,

(b) Demand cash credit against hypothecation of book debts for Rs. 55 Lakhs,

(c) Bill discounting limit for Rs. 25 Lakhs,

(d) Import and Inland Letters of credit for Rs. 75/- Lakhs.

(e) Bank Guarantee Limit for Rs. 10 Lakhs.

The respondents Nos. 2 to 9 stood as guarantors for repayment of loan amounts by respondent No. 1. The respondents Nos. 2, 3 and 4 are individuals, while respondents Nos. 5 to 8 are companies and respondent No. 9 is a sole proprietory concern. The respondent No. 4 is owner of Industrial Gala bearing No. 112 in Shiv Shakti Industrial Estate, Ghatkopar, Bombay and also of a residential fla

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