defendant No.1 on 13.9.2011 executed an Unattested Memorandum of Hypothecation by way of first pari passu charge of its entire movable assets. The charge created on the current assets and movable fixed assets by defendant No.1 in favour of the plaintiff was duly registered with the ROC. Further, in order to secure the plaintiff defendant No.1 represented that it was willing to provide security in terms of a mortgage over immovable property at Chitoor. This was a property which defendant No.1 was in the process of purchasing from a third party called BVR Paper Mills. Defendant No.1 assured that it would create a charge in favour of the plaintiff as soon as it acquires the said title. Defendant No.1 was however unable to create an equitable mortgage on the Chitoor property in favour of the plaintiff. He therefore offered additional security of the Bazpur property. However, as Bazpur property was already charged to other bankers, defendant No.1 represented that plaintiff’s charge would also be included in the list of charges over the Bazpur property. Accordingly, a supplement to Unattested Memorandum of Hypothecation was executed on 10.2.2012.
