Legal Opinion regarding Company 1.

Mr. Z


Dear Sir,

Re:      Legal Opinion regarding Company 1.

We refer to your letter dated 17/02/203 on the above. We have perused the contents of the letter along with all other papers and documents. Our findings are as follows:

1.         It appears that the captioned borrower is a defaulter and the bank has already served legal notice upon him requesting for repayment of the outstanding dues. The borrower did not pay any heed to that request, but sent a letter dated 16/02/2003 stating that all his machineries have been damaged by his land lord.

2.         It also appears that the said machineries and goods in question had already been hypothecated in favour of the Bank as security against the credit facilities availed by the captioned borrower. Hypothecation is a mode of creating a security whereby not merely the ownership, but also the possession of the thing, remains with the owner. When a property is hypothecated with a creditor, it is given as security or collateral for a debt without physical transfer thereof to the creditor.

In the above premises, we are of the opinion that, since the goods/machineries have been destroyed, as alleged by the borrower, while they were lying at the borrower’s premises   and under their ownership and possession, the Bank should expedite the legal process, both civil and criminal, against him for recovery of the outstanding dues with the bank.

Should you require any further clarification, please do not hesitate to contact the undersigned.

Thanking you,

Yours faithfully,


For: “The Lawyers & Jurists”