Bhagyalaxmi Co-Operative Bank Ltd vs Babaldas Amtharam Patel (D) Through … on 27 February, 2026

NAGARATHNA, J.

Briefly stated, the facts of the case are that on 30.10.1993,

M/s Darshak Trading Company, respondent No.6 herein, obtained

a cash-credit facility for withdrawal of Rs.4,00,000/- (Rupees Four

Lakhs Only) as a loan from Bhagyalakshmi Co-Operative Bank Ltd.,

the appellant herein. Mercantile goods belonging to respondent

No.6 were hypothecated to the appellant. Respondent Nos.1 and 2

herein, stood as guarantors/sureties for the said loan obtained by

respondent No.6 and executed contracts of guarantee in favour of

the appellant. It is the case of the appellant that respondent No.6

in connivance with some officers employed by the appellant

withdrew amounts far in excess of the Rs.4,00,000/- (Rupees Four

Lakhs Only) that had been sanctioned.

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