institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No. 76 & 77 of State Bank of India General Regulations framed in exercise of the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. 2. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 was availing Cash Credit Limit of Rs. 13.50 Lacs from applicant and approached the applicant for enhancement of the Cash Credit Limit to Rs.20.00 Lacs vide Loan application dated 12.01.2014, which is Annexure A1 to this OA. Defendant no. 2 also stood as guarantor. Thereafter, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for renewal of the limit. 3. The applicant sanctioned the Cash Credit Limit of Rs.20.00 Lacs vide Letter of arrangement dated 29.01.2014 which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the limit was renewed the limit vide letter of arrangement dated 15.06.2019, which is Annexure A11 to this OA. Thereafter, during COVID-19 pandemic, the interest accrued for period March to August 2020 was converted by the applicant into Funded Interest Term Loan (FITL) of Rs.1,22,669.00. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated of current assets, including stocks, book debts etc. vide agreement of loan cum hypothecation dated 29.01.2014, which is Annexure A3 to this OA.
