The defendant no. 1 & 2 approached the bank for financial assistance for smoothly running of business of rice Mill. Considering the loan application dated 2.2012 the bank was pleased to sanctioned the fresh limit of cash credit (stock) limit of Rs.60 lakh under the vide sanction letter dated 3.3.2012. The defendants executed the various loan documents i.e. DP note, letter of continuity, hypothecation agreement of goods and debts, letter of undertaking, guarantee agreement. The rate of interest was agreed @14.50% p.a. with monthly rest on cash credit. The defendant no. 2 & 4 create equitable mortgage details given at page 35 in schedule-A of OA. The defendant no. 1 & 2 represented of enhancement of the said limit with loan application dated 19.6.2015of cash credit limit upto Rs.80 lakh. The bank sanctioned lenhanced upto Rs.80 lakh on 12118.8.2015.The defendants executed the various loan documents i.e. DP note, letter of continuity, hypothecation agreement, letter of undertaking, guarantee agreement. The rate of interest was agreed @12.50% p.a. with monthly rest on cash credit (hypothecation). The charge over the immovable properties belonging to the defendant no. 2 & 4 were also created in favour of the bank under CERSAI under section 20 of the Securitization Act. The defendant no. 1 & 2 approached the bank for continue of financial assistance for smoothly running of their business of rice mill. Considering the loan application dated 1.11.2016 the bank was pleased to continue the sanctioned the cash credit (stock) limit of Rs.80 lakh on 2.2.2017. The defendants executed the DP note, letter of continuity, letter of confirmation, interest agreement. The rate of interest was agreed @10AO% p.a. with monthly rest on cash credit (hypothecation).
