In this recovery suit, the High Court of Judicature at Bombay granted an exparte decree against the defendant guarantor. The court decreed the principal amount and fixed the redemption date for the equitable mortgage.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
SUIT NO.2675 OF 2010
SBI Global Factors Limited..Plaintiffs.
Versus
Mount Abu Holdings Private Limited..Defendants.
Mr. Vishal Kanade with Mr. R.S. Shekhawat i/by Raj Legal, for the Plaintiffs.
None for the Defendants.
CORAM : G.S. Patel, J.
Monday, 10th February 2014.
P.C. :
1.Heard Mr. Kanade, learned advocate for the plaintiffs. None appears for
the defendants. Although the defendants have been duly served, no written
statement is filed.
2.The matter is listed today for exparte decree. This is a usual recovery
suit. It has been filed against the defendant in its capacity as guarantor to the
principal borrower, one Dragon Power Tools Private Limited. The claim is
Rs.11,81,12,092.61 ps. with interest at the rate of 18% per annum. The plaintiffs
have filed a compilation of original documents. These are taken on record and
marked in evidence as Exhibit “P1” (collectively).
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3.The plaintiffs’ claim arises out of a letter of guarantee dated 10th
October 2007, by which the defendants guaranteed the principal borrower’s
debts under a trade finance facility. The defendants also executed an equitable
mortgage in respect of its property, viz., commercial office premises at 503-
504, Raheja Chambers, Nariman Point, Mumbai. There is a Memorandum of
Entry in respect of this equitable mortgage. That Memorandum is also dated
10th October 2007. The deed of guarantee, which underlies the security
created by the mortgage, is a registered document.
3.There is no defence to the suit. The plaintiffs are entitled to a decree in
the principal amount as prayed. However, there being no contractual rate of
interest agreed as against the defendant, the plaintiffs will be entitled to the
interest on the principal amount at the rate of 12% per annum from the date of
the suit till payment or realization.
4.In the result, there will be a decree in terms of prayer clauses (a), (b) and
(c), subject to the interest rate in prayer (a) being 12% per annum from the date
of the suit till payment or realization. The time of redemption of the equitable
mortgage is fixed at 10th April 2014.
5. Decree be drawn up accordingly. Sealing of decree is dispensed with.
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1 issue framed by the court
Whether the plaintiffs are entitled to exparte decree against the defendant guarantor.
3 provisions across 3 enactments
G.S. Patel
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court