LETTER OF HYPOTHECATION

(For securing moveable assets including machinery / goods / book-debts -

as per sanction)
Place : AMROHA-JYOTI BA PHULEY NAGAR
Date : 30/01/2025
Indian Overseas Bank
Branch : AMROHA-JYOTI BA PHULEY NAGAR

Indian Overseas Bank (hereinafter called “The Bank”) through the above
mentioned branch or any other branch having at the request of through its
(hereinafter called “The borrower”) agreed to grant and / or agreed to
continue the following credit facilities
(All original limits granted for the first time earlier to the enhancement, if any)

Type of Facility As per Existing sanction As per Proposed sanction

Cash Credit 0.00 9,50,000.00
Total 0.00 9,50,000.00

AND / OR Agreed to enhance credit facilities as:

(All present total limits - Not DP - with or without enhancement - filling up this
column will arise on enhancement of any limit or all limits - when there is no
enhancement for any one limit, same limit should be mentioned in both
columns “From & To”)
Nature of Facility From Amount To Amount

Aggregating to Rs 9,50,000.00 hereinafter called “total enhanced credit

facilities”) to the borrowers repayable on demand or otherwise and to be
secured by machineries / goods / book debts to be hypothecated to the
Bank.
IT IS HEREBY AGREED by the borrowers (the borrowers agreeing jointly
and severally) with the Bank as follows: The expression “the Borrowers”
shall, when the borrower is
1.
 1. An individual, include his or her heirs, executors administrators,
successors and permitted assigns.
2. A firm, include the partners for the time being of the firm, their

heirs, executors, administrators and permitted assigns.

3. a Company, include its successors and permitted assigns.

4. a joint and undivided Hindu family or a joint family firm, include all

its coparcener.
5. an Association, whether corporate, or incorporate, include its

successors and permitted assigns and all members and their

respective heirs executors, administrators and permitted assigns.

2. That the machineries / goods / book – debts/ stocks/ assets (hereinafter

called “the Securities”) described in general terms in the
Schedule hereto are hereby hypothecated to the Bank as security by
way of first charge and are to be deemed to have been so
hypothecated as security to the Bank for all monies for the time being
owing by the Borrowers to the Bank and for the balance due to the
Bank at any time or ultimately under the said credit facilities / enhanced
credit facilities and for the payment of all debts and liabilities mentioned
hereafter. The expression “the balance due to the Bank” in this and
subsequent Clauses of this Agreement shall be taken to include the
principal moneys from time to time due under the said credit facilities /
enhanced credit facilities and also all interest thereon calculated from
day to day at the rate hereinafter mentioned and the amount of all
charges and expenses which the Bank may have paid or incurred in
any way n connection with the securities or the sale or disposal thereof
the term machineries / goods including litigation costs, if any, which
have already been fixed or lying loose in the premises of the borrower
or the borrower’s rented premises and the machineries / goods which
are hereafter be fixed in or brought into the said premises in addition to
the machinery / machineries / goods described in the schedule or by
way of substitution for and in lieu of any machineries / goods which may
from time to time be replaced or stored.
3. That the Bank shall from time to time be at liberty to have the Securities

valued by an Appraiser appointed by the Bank and debit the Borrower’s

account with the fees and expenses of such appraisal. Any such
valuation shall be conclusive and binding on the borrowers. The
 Borrower will at all times maintain a sufficient quantity and market value
of the said goods and assets to provide the margins of security required
by the Bank from time to time and will forthwith whenever necessary
provide further goods and assets (approved by the Bank) to restore
such margins or pay the Bank the equivalent in cash.
4. That the Borrowers shall not during the continuance of this Agreement,

pledge, mortgage sell or otherwise charge or encumber any of the

Securities for the time being the subject or intended to be the subject of
this Agreement nor do not permit any act whereby securities herein
before expressed given/to be given to the Bank shall not be
prejudicially affected in any way.
5. The Borrowers hereby undertake that they will not at any time so long

as any money remains due in respect of the said credit facilities/

enhanced credit facilities remove or cause or permit to be removed all
or any of the said securities from the said premises without the consent
in writing of the Bank having been obtained first and that borrowers will
not encumber or do any other act by means of which the Bank’s
security over the said goods / machineries may be impaired or affected
in anyway.
6. The Borrowers hereby empower the Bank or anyone from time to time

authorized by them in that behalf and without previous notice to the

borrowers to enter the said premises for the purpose of inspecting the
said goods / machineries/ stocks/ book debts/assets therein and shall,
when required by the Bank, give full particulars to the bank of the
hypothecated goods / machineries/ stocks/ book debts/ assets.
7. The borrower agrees that the Bank its Agents and Nominees shall be
entitled, at all times without notice to the Borrower but at the Borrower’s
risk and expense and if so required as Attorney for and in the name of
the Borrower to enter any place where the said goods and assets may
be and inspect, value insure, superintend disposal and/or take
particulars of all or any part of the said goods and assets and check
any statements, accounts, reports, information and for the purpose of
such entry to do all acts, deeds and things deemed necessary by the
Bank including breaking open of any place where the hypothecated
goods and the books of account or other documents relating to the
hypothecated debts and assets may be lying or stored or kept and also
on any default of the Borrower in payment of any money hereby
secured or the performance of any obligation of the borrower to the
Bank or breach of any term of the said agreement of loan or the
occurrence of any circumstances in the opinion of the Bank
endangering this security to take charge of, seize, recover, receive,
take possession of, inter-alia, by putting its locks on godowns and other
places where the hypothecated goods or account ,books and other
documents relating to the hypothecated book-debts are lying or kept
and to appoint receiver or remove all or any part of the said goods and
assets and also all books of accounts, papers, documents and
vouchers and other records relating thereto, and also to give notices
and demands to debtors and third parties liable thereof sue for recovery
receive and give receipts for the same and/or sell, realize, dispose of
and deal with in any manner including by tender or public auction or
private contract and whether with or without the intervention of Court all
or any part of the said goods and assets and to enforce realize, settle,
compromise, submit to arbitration and deal in any manner with any
rights and debts or claims relating thereto and to complete any
engagements and carrying on the business of the Borrower through
Agents, Managers or otherwise without being bound to exercise any of
these powers or being liable for any loss in the exercise thereof and
without prejudice to the Bank’s rights and remedies of suit or otherwise
and notwithstanding there may be any pending suit or other
proceedings the Borrower undertaking to give immediate possession to
the Bank on demand of the said goods and assets and to give notices
to debtors as and when required by the Bank to transfer and deliver to
the Bank all relative bills, contracts, securities, papers and documents
and agreeing to accept the Bank’s accounts of sales receipts and
realizations as sufficient proof of amounts realized and relative
expenses and to pay any shortfall or deficiency thereby shown provided
that the Bank shall be entitled at all times to apply any other money or
monies in its hands standing to the credit of or belonging to the
Borrower in or towards payment of any amount for the time being
payable to the Bank in respect of all or some or any of the aforesaid
credit facilities granted and/or agreed to be granted by the Bank or
otherwise as aforesaid and to recover at any time from the Borrower by
suit or otherwise the balance remaining payable to the Bank in respect
of the aforesaid credit facilities or otherwise notwithstanding that all or
 any of the securities may not have been realized provided also that
subject to these powers of the Bank the Borrower may with the
approval of the Bank deal with the said goods and assets from time to
time in due course of business provided the margin of security required
by the Bank is fully maintained and on the terms of payment or delivery
to the Bank of the proceeds thereof or documents therefore
immediately on receipt thereof.
8. The borrower further agrees that the Borrower will submit to the Bank

monthly or oftener as may be required statements of the said goods

and assets hypothecated to the Bank in the form prescribed by the
Bank from time to time with list of current insurance policies and
amounts verified by certificates of the Borrower that the quantities and
amounts stated are correct and that all the said goods and assets are
fully covered by insurance and will also furnish and verify all statements
reports returns, certificates and information and will also execute all
documents and do all acts and things which the Bank may require to
give effect hereto and the Borrower authorizes the Bank and each of its
Agents and Nominees as Attorney for and in the name of the Borrower
to do whatever the Borrower may be required to do hereunder.
9. Borrowers shall at all times during the continuance of this Agreement

and so long as any money shall remain due and payable to the Bank by
virtue hereof insure and keep insured the securities to the full extent of
their value from to time against fire risks and or such other risk(s) in
some insurance Office or Offices or with an insurance company
approved by the Bank and in the name of the BANK and shall duly and
punctually pay the premium payable in respect thereof at least one
week before the same shall have become due or payable and shall
handover the policy or policies of insurance and the receipts for
premium paid in respect thereof to the Bank and the borrower agrees
not to raise at any time any dispute as to the amount or the insurable
interest of the Bank. If default shall be made in payment of such
premium or in keeping the securities so insured then and in such case it
shall be lawful for but not obligatory upon the Bank to pay such
premium and to keep such securities so insured and the expenses
incurred by the Bank shall be debited to the borrower’s account and
shall be paid by the borrowers as and when demanded by the Bank.
 The insurance policies shall be delivered to the Bank when required by
the Bank to do so.
10. That all sums received under any such insurance as aforesaid shall be

applied in or towards the liquidation of the balance due to the Bank for
time being and in the event of there being a surplus the same shall be
applied as provided herein. The Borrower further expressly agrees that
the Bank shall be entitled to adjust settle compromise or refer to
arbitration any dispute arising under or in connection with any
insurance and such adjustment, settlement ,compromise and any
award made on such arbitration shall be valid and binding on the
Borrower and also to receive all moneys payable under any such
insurance or under any claim made thereunder and to give a valid
receipt therefor, and that the amount so received shall be credited to
the Borrower's account and the Borrower shall not raise any question
that a larger sum might or ought to have been received or be entitled to
dispute his liability for the balance remaining due on any account or
accounts after such credit, provided that the Bank may at its own
absolute and unqualified discretion waive all or any of these
requirements.
11. The borrowers shall pay all rents, rates, taxes and other outgoings in

respect of the premises in which the securities are fixed or lying.

12. The borrowers hereby empower the Bank or any one from time to time

authorized by them for the purpose so long as any money remains due
to the Bank in respect of the said credit facilities / enhanced credit
facilities to take possession of the machinery / machineries/
stocks/assets or any of them and if necessary to lock the premises
and/or to break open the premises with or without notice to the
borrowers.
13. Interest / Commission / Discount will be charged as per the loan

documents, if any, executed / to be executed by the borrower and / or

as per the Bank Rules / RBI guidelines.
14. That on demand by the Bank, borrower shall pay to the Bank the

balance then due to the Bank together with all further charges and
expenses (if any) up to the date of payment provided that nothing
contained in this clause shall be deemed to prevent the Bank from
demanding payment of the interest for the time being due without at the
 same time demanding payment of the balance due to the Bank
exclusive of such interest.
15. That if the borrower fails or neglects to repay to the Bank on demand

the balance due to the Bank or in the event of the borrower committing
a breach or making default in the observance or performance of any of
the terms of the Agreement or in the event of the borrowers committing
any act of insolvency, becoming or being adjudicated bankrupt or
insolvent of executing any Deed of Agreement, composition, or
Inspectorship or in the event of any distress or execution being levied
or enforced upon or against any of the property of the borrowers
whether the said property shall or shall not be the subject of this
security or in the event of any person, firm or company taking any step
towards applying for or obtaining an order for the appointment of a
Receiver of the Borrower’s property or any part thereof or if any
person, firm or Company, shall apply for or obtain an order for the
winding up of the borrowers or if any such order is made or any step be
taken by any person, firm or Company in or towards passing any
resolution to wind up the borrowers or if any such resolution be passed
which-ever may first happen it shall be lawful for the Bank forthwith or
at any time thereafter and without any notice to the borrower (without
prejudice to the Bank’s right of suit against the borrowers and Bank’s
right under the SARFAESI Act or any other Law) either by public
auction or private contract and subject to such conditions as the Bank
shall think fit absolutely to sell or otherwise dispose of all or any of the
Securities either together or in lots or separately and to apply the net
proceeds of such sale in or towards the liquidation of the balance then
due to the Bank.
16. In the event of such sale or realization as aforesaid, the borrowers

agree to accept the accounts of the Bank for such sale or realization
signed by their Manager/Accountant or other duly authorized officer of
the Bank as sufficient proof of the amount realized by the Bank and
costs charges and expenses incurred in such sale or realization.
17. That if the net sum realized by such sale be insufficient to cover the

balance then due to the Bank, the Bank shall be at liberty to apply any
other money or moneys in the hands of the Bank standing to the credit
of or belonging to the borrowers or any one or more of them in or
towards payment of the balance due to the Bank and in the event of
 there not being any such money or moneys as aforesaid in the hands of
the Bank or in the event of such money or moneys being still insufficient
for the discharge in full of such balance the borrowers promise and
agree forthwith on production to them of an account to be prepared and
signed as provided herein, to pay any further balance which may
appear to be due by the borrower thereon provided, always that nothing
herein contained: shall be deemed to negate, qualify or otherwise
prejudicially affect the right of the Bank (which it is hereby expressly
agreed that the Bank shall have) to recover from the borrowers, the
balance for the time being remaining due from the borrowers to the
Bank under the said credit facilities/enhanced credit facilities
notwithstanding that all or any of the Securities may not have been
realized.
18. That in the event of there being a surplus available of the net proceeds

of such sale after payment in full of the balance due to the Bank it shall
be lawful for the Bank to apply the said surplus together with any other
money or moneys belonging to the borrowers or any one or more of
them for the time being in the hands of the Banks in or under whatever
accounts as far as the same shall extend in or towards payment or
liquidation of any and all other moneys which shall be or shall have
become due from the borrowers or any one or more of them whether
sole or jointly with any other person or persons, firm or company to the
Bank by way of loans, discounted bills, letter of credit, guarantees,
charges or any other demands legal or equitable which the bank may
have against the borrowers any one or more of them of which the law of
set-off or mutual credit would in any case admit and whether the
borrowers or any one or more of them shall become or be adjudicated
bankrupt or insolvent or be in liquidation or otherwise and interest
thereon from the date on which any and all advance or advances in
respect thereof shall have been made at the rate of respective rates at
which the same shall have been so advanced.
19. That any surplus of the net process of any such sale after payment of

all principal and interest and other moneys due by the borrowers or any
one or more of them to the Bank for in respect of the said credit
facilities/enhanced credit facilities or in anywise relating thereto and of
all other moneys due from them to the Bank on any account
 whatsoever as aforesaid shall be paid to them by the Bank when they
shall or may direct.
20. That the borrowers agree to accept as conclusive proof of the

correctness of any sum claimed to be due from them to the Bank under
this Agreement a statement of account made out from the Books of the
Bank and signed by the Accountant or other duly authorized officer of
the Bank without the production of any other voucher, document or
paper etc.
21. That this Agreement is to operate as security for the balance from time

to time due to the bank and also for the ultimate balance to become
due under the said credit facilities/enhanced credit facilities and any
account relating to the said credit facilities/enhanced credit facilities is
not to be considered to be closed or the purposes of security and the
security is not to be considered exhausted by reason of any such
account being brought to credit at any time or from time to time.
22. That this agreement is not to prejudice the rights or remedies of the

Bank against the borrowers and other securities furnished/to be

furnished by them to the Bank irrespective and independent of this
Agreement.
23. That the Bank shall not be in any way liable or responsible for any

damage or depreciation which the goods/machineries/assets for the

time being hypothecated to the Bank and forming part of the Securities
the subject of this Agreement or any part thereof may suffer or sustain
on any account whatsoever while the same shall at any time come into
possession of the Bank.
24. Borrowers shall also display board(s) conspicuously at all time in

place(s) where the securities are kept/stored/available stating distinctly

that the goods/ machineries/stocks/assets in the premises are under
hypothecation to the Bank, and or in case of machinery, have an
inscription to that effect painted on the machines and in default the
Bank may itself cause its board(s) to be displayed in the aforesaid
manner or paint the inscription.
25. The Borrower shall at all times indemnify and keep indemnified the

Bank from and against all suits, proceedings, costs, charges claims and
demands whatsoever that may at any time arise or be brought or made
by any person against the Bank in respect of any acts matters and
things lawfully done or caused to be done by the Bank in connection
 with the said goods and assets or in pursuance of the rights and
powers of the Bank under this Agreement.
26. That on any default of the borrowers in payment on demand of any

money hereby secured or the performance of any obligation to the

Bank under this or any other security or the occurrence of any
circumstance in the opinion of the Bank prejudicing or endangering this
or any other security, the Bank shall be entitled at the borrower’s risk
and expenses as Attorney for and in the name of the Borrowers or
otherwise (The borrowers hereby irrevocably appointing the bank to be
its Attorney) to take possession and/or appoint receivers of the said
debts under this security give notices and demands to borrowers and
third parties liable that for and to demand, sue for recover, receive and
give receipts and discharges for the same and sell or realize and
discharges for the same and sell or realize by public auction or private
contract or otherwise dispose of all or any part of the said debts and
henceforth, settle, compromise submit to arbitration or deal in any
manner with any the said debts or claims under his security without
being bound to exercise any of these powers or liable for any loss in the
exercise thereof the borrowers undertaking to transfer and deliver to the
Bank all relative documents and papers and agreeing to accept the
Bank accounts or receipts from realization under this security and to
pay any shortfall or deficiency thereby shown. The borrowers agree to
execute on demand by the Bank such further documents as may be
required by the Bank to vest the said debts or any of them in the Bank
to render the same readily realizable or transferable by the Bank at any
time. The borrowers hereby declare that the said debts shall always be
their absolute property at their sole disposal and free from any prior
charge or encumbrance and declares that nothing herein shall operate
to prejudice the Bank’s rights or remedies in respect of any present or
future security, guarantee, obligation or decree for any indebtedness or
liability of the borrowers to the Bank. That the borrowers will not
receive, compound or realize any of the said debts nor do anything
hereby the recovery of the same may be impeded, delayed or
prevented without the consent of the Bank and will keep proper books
of account of its business and will at any time when required produce
such books for the inspection of the Bank and its officers and agents
 and allow it or them access thereto and to make copies of or extract
from the same.
27. The Borrower declares that all the said goods and assets hypothecated

hereunder and are at present in existence and all the said goods and
assets over which security may be created hereafter for all or some or
any of the aforesaid credit facilities and are in existence at the time of
such creation of security are and shall be the absolute property of the
Borrower at his/its sole disposal and free from any prior charge lien or
encumbrance except such charge lien or encumbrance as have been
notified to the Bank and accepted by it as having priority over its charge
and that all the future goods and assets to be given as security to the
Bank shall likewise be the unencumbered absolute and disposable
property of the Borrower and the Borrower shall not without the Bank’s
prior written permission create any mortgage, charge, lien or
encumbrance of any kind upon or over the same or on the undertaking
property (whether movable or immovable) and assets (including
uncalled share capital or any part thereof in the case of Borrower
company) except to the Bank nor suffer any such mortgage, charge,
lien or encumbrance to affect the same or any part thereof nor do or
allow anything that may prejudice the security while the Borrower
remains indebted or liable to the Bank in any manner without Bank’s
prior written consent. The Borrower shall also not resort to outside
borrowings without the Bank’s prior written consent.
28. Subject always to the Bank's rights, powers and privileges under this

Agreement or otherwise the Borrower may with the approval of the

Bank and in due course of business sell from time to time, the said
goods and assets which have been hypothecated to the Bank provided
the margins of security required by the Bank are always fully
maintained on the terms of payment and delivery to the Bank of the
proceeds thereof the documents relating thereto immediately on receipt
and on the express understanding that the security created hereunder
and all realizations recoveries and insurance proceeds thereof and all
rights and interests in respect and all documents therefore shall always
be kept distinguishable and held as the Bank's exclusive property
specifically appropriated to the security created hereunder to be dealt
with only under the directions of the Bank.
29. Any notice required to be served hereunder shall be in writing and shall
be deemed to have been sufficiently served if addressed to the
borrowers at their address being registered (in the Bank or in the event
of no such address being registered) at their last known place of
residence or business and left at such address or place or forwarded to
them by post at the address or place aforesaid. A notice sent by post
shall be deemed to have been served at the time when in due course of
post it would be delivered at the address to which it is sent.
30. That the Securities are within the absolute disposition and control of the

borrowers and are free from any prior charge in favor of any other
creditor.
31. That in case the borrowers shall be a firm or members of a firm no

changes whatsoever in the constitution of such firm during the

continuance of this Agreement shall impair or discharge the liability of
the borrowers of any one or more of them hereunder.
32. The borrowers hereby agree that the security hereby created would

stand hypothecated for other amounts due by the borrowers to the

Bank under any other account even though the ultimate balance under
this Agreement is fully repaid. This Agreement shall operate as a
continuing security for all moneys, indebtedness and liabilities aforesaid
notwithstanding the existence of a credit balance in the account or
accounts at any time or any partial payments or fluctuations of
accounts. Nothing herein contained shall prejudice any rights or
remedies of the Bank in respect of any present or future security
guarantee obligation or decree for any indebtedness or liability of the
borrower to the Bank and also the Bank’s statutory right under the
SARFAESI Act or any other law.
33. All the machineries of the Borrower hypothecated and charged to the

Bank shall be treated as movable property and not as an immovable

property and shall bear the name of the Bank indicating that the said
machineries are hypothecated and charged to the Bank. The Borrower
shall also exhibit conspicuously in the main hall of the factory a list
showing the items of machineries hypothecated and charged to the
Bank.
34. This Letter of Hypothecation is Supplemental to the Letter of
Hypothecation dated 30/01/2025 executed for the credit facilities
aggregating Rs 9,50,000.00 (Rupees Nine Lakh Fifty Thousand only)
 Applicable in case of treating this Letter of Hypothecation as
Supplemental.

THE SCHEDULE REFERRED TO HEREINABOVE [Give description of the

machinery/ goods/ assets hypothecated) Current Assets - Stock ,

Exclusive charge on entire current assets (Present and Future) of the firm.
Including hypothecation of paid stocks and entire amount of book debts
related to business.
Value of stocks as on as per Provisional balance sheet/ Data
1500000
Submitted by Borrower
Book debts as on 0
Other current assets as on 0

IN WITNESS whereof the borrowers have hereunto set their hands on the
30/01/2025 Hereinabove mentioned.

Signature………………………
****In case of any discrepancy between the English version and translated
version in other language, English version shall prevail”
110 (E)