( 1 ) THIS is a suit under Order XXXIVCivil Procedure Code for recovery of Rs. 8,91,827. 00 being principal sum due as on 13. 12. 1995 payable by the defendants jointly and severally to the plaintiff bank together with pendente lite and future interest along with cost of the suit.

( 2 ) THE plaintiff bank is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The defendant No. 2 is the sole proprietor of defendant No. 1 duly registered as Small Scale Industries Firm with Directorate of Industries, Kashmere Gate, Delhi. It is averred that defendant No. 2 approached the plaintiff for grant of certain banking facilities for the establishment and enhancement of trade/business activities and after processing the application the following credit facilities were sanctioned in favour of defendant No. 1 on 30. 3. 1991:

"a) Cash Credit (Hypothecation) Rs. 2. 00 lakhs against hypothecation of stocks of raw material, dyestee, PVC compound, PVC granuals etc.

B) Term Loan of Rs. W. 50 lakhs for purchase of one plastic Injection Moulding machine;

C) D. D. Clean - Rs. 1. 00 lakh for purchase of third -party cheques and Bank drafts arising ou

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