As per the averments in the application, the Applicant Bank states that Defendant no. 1 is a company incorporated represented by its Directors Defendants no. 2 and 3 availed overdraft Loan facility of Rs. 50,00,000/- and Term Loan of Rs.50,00,000/- repayable in 60 equated monthly installments of Rs.1,04,400/- p.m together with interest @9.25% p.a with monthly rests and executed necessary loan documents such as Loan Agreement ( Master Facility Agreement ) dated 06.06.2023 in favor of the Applicant Bank. The Defendants no. 2 and 3 stood as a Guarantor and executed Letter of Continuing Guarantee Dated 06.06.2023 in favor of the Applicant Bank. The Defendants availed Business Loan of Rs. 10,11,119trepayable in 36 monthly installments of Rs. 36,071t- p.m and executed Business Loan Agreement dated 16.11.2023 in favor of the Applicant Bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classified the account as NpA on 22.01.2025 and issued Loan Recall Notice dated 13.08.2025 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.
