The property which is the subject matter of the mortgage has been sold by auction under the orders of the companyrt for a sum of Rs 4,02,000 to one Smt Kamlesh Goel.
They have also, by a Letter of Promise dated 10 6 1981, pledged the plant and machinery installed in the said premises to the bank as a security for the said advances.
There is also an agreement for the pledge of movables dated 7 1 1980 executed by the first respondent in favour of the appellant bank.
Respondents 2 to 5 are the partners of Respondent 1.
with quarterly rests.
The revision petition of the appellant bank was dismissed by the High Court by the impugned judgment and order.
The appellant bank filed Civil Suit No.
Under the orders of the companyrt the sale proceeds have been deposited in companyrt.
The claim of the appellant bank companyld be satisfied only out of the balance amount.
Hence this appeal by special leave.
The Judgment of the Court was delivered by SUJATA V MANOHAR, J. Leave granted.
While the suit was pending, the Commercial Taxes Officer, Bharatpur got himself impleaded in the suit on 18 5 1990 on the ground that he had a prior claim for the recovery of a sum of Rs 1, 19,122 as sales tax dues from Respondent 1 and was entitled to realize it by sale of the mortgaged property.
It was companytended by the Commercial Taxes Officer, Bharatpur that the sales tax dues of the first respondent were liable to be paid first out of the sale proceeds.
As a security for repayment of the amounts advanced to Respondent 1 by the appellant bank, Respondent 1 created a mortgage of their factory premises situated at Industrial Area, Bharatpur by a Deed of Mortgage dated 18 10 1977.
5/86 in the companyrt of the Additional District Judge II, Bharatpur against the respondents for the recovery of a sum of Rs 3,79,672 due and payable under the above cash credit facility and for future interest 16.25 p.a.
The trial companyrt by its judgment and order dated 18 5 1990 accepted this claim of the Commercial Taxes Officer.
In this suit the appellant bank also asked for the realisation of the mortgage security under Order 34, Rule 4 of the Code of Civil Procedure.
The appellant, namely, the State Bank of Bikaner and Jaipur had given cash credit facilities to Respondent 1, National Iron and Steel Rolling Corporation.
