2026 INSC 205 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.3200 OF 2016 BHAGYALAXMI CO-OPERATIVE BANK LTD. …APPELLANT VERSUS BABALDAS AMTHARAM PATEL (D)

THROUGH LEGAL REPRESENTATIVES & OTHERS …RESPONDENTS

J U D G M E N T

NAGARATHNA, J.

Briefly stated, the facts of the case are that on 30.10.1993, M/s Darshak Trading Company, respondent No.6 herein, obtained a cash-credit facility for withdrawal of Rs.4,00,000/- (Rupees Four Lakhs Only) as a loan from Bhagyalakshmi Co-Operative Bank Ltd., the appellant herein. Mercantile goods belonging to respondent No.6 were hypothecated to the appellant. Respondent Nos.1 and 2 Signature Not Vherifieed rein, stood as guarantors/sureties for the said loan obtained by NEETU SACHDEVA Date: 2026.02.27

17:00:49 IST Reason:

respondent No.6 and executed contracts of guarantee in favour of the appellant. It is the case of the appellant that respondent No.6 in connivance with some officers employed by the appellant withdrew amounts far in excess of the Rs.4,00,000/- (Rupees Four Lakhs Only) that had been sanctioned.

1.1 Respondent No.6 defaulted in repaying the loan to the appellant. As a consequence, the appellant filed