JUDGMENT

Dalveer Bhandari, J.—

1. This appeal is directed against the judgment of the High Court of Calcutta in Civil Revisional Jurisdiction dated 10.9.1999 in C.O. No. 1581 of 1999.

2. Briefly stated the facts are as follows: The appellant Industrial Investment Bank of India Ltd. (hereinafter referred to as “the appellant”) on 27.9.1994 sanctioned the first short term working capital loan of Rs.3 crores in favour of Modern Malleables Limited (hereinafter referred to as “the borrower company”).

3. The loan agreement was entered into between the appellant and the borrower company on 03.10.1994 in respect of the first short term working capital loan of Rs.3 crores. The said loan agreement was signed on behalf of the borrower company by the respondent as a Director of the borrower company. On the same day, demand promissory note for Rs.3 crores was executed on behalf of the borrower company in favour of the appellant. The same was executed on behalf of the borrower company by the respondent as the Director of the borrower company. A deed of undertaking to create mortgage in respect of its various immovable properties was also executed on behalf of the borrower company by the responde