( 1 ) AT the conclusion of the arguments I pronounced the judgment. I dismissed the application with costs. Now I give my reasons for the decision.

( 2 ) THIS is an application for stay of suit under Section 10 of the Code of Civil Procedure. These are the facts. The plaintiff Grindlays Bank Limited has instituted a suit for the recovery of Rs. 24,29,589. 90 against six defendants, namely, (1) Hindustan Embroidery Mills Private Limited (the Company) (2) Sardar Gurdial Singh Uppal. (3) Sardar Inder Singh Uppal, (4) Sardar Iqbal Singh Uppal. (5) Sardar Harkishan Singh Uppal and (6) Sardar Man Mohan Singh Uppal. Defendant No. 1 is a company and defendants 2 to 6 are its directors. The suit is based on an overdraft facility which the bank had given to the defendants. The defendants executed letter of hypothecation and continuing security on all its existing and future stocks etc. It is alleged that under the letter of. hypothecation the bank has a right to take possession of the hypothecated goods and to sell the same in the event of the defendants failure to make payment on demand of the bank dues. It is claimed by the bank that on the date of the institution of the suit a sum of Rs.

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