BANK OF INDIA

SUPPLEMENTAL DEED OF HYPOTHECATION

THIS AGREEMENT made at ……………on the ………………day of……….2000 between-

1) Shri/Smt …………………….
Son/daughter/wife of ……………………….. residing at …………………………….and at
present carrying on business as SOLE PROPRIETOR/PROPRIETRESS in the firm name and
style of M/s ………………………………. And having its office
at……………………………………….
OR

1) Shri/Smt …………………….
Son/daughter/wife of …………………………residing at …………………………….and

2) Shri/Smt …………………….
Son/daughter/wife of ………………………..residing at …………………………….and

3) Shri/Smt …………………….
Son/daughter/wife of ……………………….. residing at
…………………………….and

4) Shri/Smt …………………….
Son/daughter/wife of ……………………….. residing at ……………………………….
carrying on business as Parteners in PARTNERSHIP under the firm name and style of M/s
…………………………………………………………………………………...and
Having its office at ……………………………….
OR

M/s. …………………………….. an HUF concern having its office at ………………….and

represented by its Karta Shri …………………………………………………..

OR

………………………………Company Ltd., a public/private Limited Company within the meaning of

Companies Act, 1956 and having its registered office at ……………..in the State of …………………..

OR

…………………………………. A Co-operative Society/Society/ association, registered under

……………… and having its office at ……………………….in the State of …………………….

OR

…………………………. a body corporate constituted under the provision of

……………………………………………………………………………. Hereinafter referred to as “the
Borrower” which expression shall unless the same be repugnant to the context or meaning thereof shall
mean and include – where the Borrower is

a) a single individual his / her heir / heirs, executors, administrators, successors and assigns;
b) more than one individual, all of them jointly and / or each of them severally, their survivors or
survivor and the respective heirs / executors / administrators, successors AND assigns;
c) a firm, the partners for the time being constituting the said firm, survivors or survivor of them,
heir, executors and administrators of last of such survivor, their successors and assigns;

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d) a Joint Undivided Hindu Family, the Karta and all its members for the time being and from time
to time;
e) a public / private limited company / co-operative society or a body corporate, its successors and
assigns; and
f) an Association incorporated its successors and assigns and all members and their respective
heirs / executors / administrators and assigns.

Of the ONE PART and

BANK OF INDIA , a body corporate constituted under the Banking Companies ( Acquisition and
Transfer of Undertakings) Act, 1970 and having its Head Office at Plot No C-5, G Block,
Bandra Kurla Complex, Bandra East, Mumbai – 400 051 and a Branch Office
amongst other places at ……………………………( hereafter referred to as “the Bank”) ( which
expression repugnant to the context or meaning thereof includes its successors and assigns )

Of the OTHER PART

WHEREAS:

1. By an Agreement of Hypothecation of plant and machinery, stocks and book-debts dated

…………….. executed by the Borrower in favour of the Bank (hereinafter referred to as
the “Principal Deed of Hypothecation”) the Borrower has as security for the credit
facility with an aggregate limit of Rs. granted by the Bank as set out in the Schedule I
thereunder written as also in the Schedule I hereunder written (hereinafter referred to as
the said facilities) hypothecated and charged in favour of the Bank as and by way of first
charge the following assets of the Borrower viz.
a) all tangible movable machinery and plant, both present and future whether
installed or not and whether lying loose or in cases at site or in transit more
particularly described in part A of Schedule II thereunder written as also in Part
A to Schedule II. Hereunder written or which may at any time during the
continuance of this security being installed or lying loose or in cases or being in
or upon or about the Borrower’s premises / godowns at or wherever else the
same may be or be held by any party anywhere to the Order and disposition of
the Borrower or in the course of transit to the Borrower ( all of which are
hereinafter called “the hypothecated machinery”);
b) all tangible movable property and assets of whatsoever nature ( other than
movable and uninstalled machines) of the Borrower ( both present and future)
and including but WITHOUT PREJUDICE to the generality of the foregoing all
stocks of raw materials, such as ……………………………………………..
finished and semi-finished goods, spare parts, components (including spare parts
and stores relating to plant and machinery both present and future) and stocks in
process of the Borrower wheresoever situate at ………………………………..
and more particularly described in Part B of Schedule II thereunder written as
well as in Part B of the Schedule II hereunder written and/or in transit now
belonging to or that may at any time during the continuance of its security
belong to the Borrower or that may be held by any party to the Order and
disposition of the Borrower (all of which are hereinafter referred to as “the
hypothecated goods”); and
c) all the present and future book-debts, outstandings, money receivables, claims,
bills which are not due and owing or which may at any time hereafter during
continuance of this security become due and owing to the Borrower in the course
of his business by any person, firm, company or body corporate or by the Central
Government or any State Government or any Government Department or Office
or any municipal or local or public or semi-governmental body or authority or

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 any body corporate or undertaking or project whatsoever ( all of which are
hereinafter collectively referred to as “the said debts”)

To the intent that the security and charge hereby created shall be a security by way of
first charge on all the said hypothecated machinery, the hypothecated goods and the said
debts ( the hypothecated machinery, hypothecated goods and the said debts are
hereinafter for brevity’s sake collectively referred to as “the hypothecated assets” for the
due payment of all moneys, including the principal sums, interest / commission, costs,
charges and expenses and all other moneys whatsoever due owing and payable by the
Borrower to the Bank under or in respect of or in connection with or in any wise
concerning or relating to the said facilities agreed to be granted and/or granted by the
Bank to the Borrower as aforesaid and also for due repayment of all present and future
indebtedness and liabilities of the Borrower to the Bank of any kind in any manner
whether solely or jointly, primary or collateral, accrued or accruing with all relative
interest or commission, charges, costs ( between advocate and client ) and expenses.

2. At the request of the Borrower the Bank has agreed to enhance the limits under the said
facilities as also granted additional facilities with new aggregate limits of Rs.
……………………repayable with interest / commission at the rate and in the manner set
out in the Schedule III hereunder written on the terms and conditions set out in the letter/s
sanction dated ……………and interalia against the security of the hypothecated assets by
extending the charge created thereon earlier under the Principal Deed of Hypothecation to
secure the enhanced or additional facilities granted by the Bank as hereinafter appearing.

NOW IN CONSIDERATION OF THE BANK ENHANCING THE LIMITS UNDER THE SAID
FACILITIES AS ALSO GRANTING ADDITIONAL FACILITIES WITH TOTAL
AGGREGATE LIMITS OF RS. …………………………………………………………..
THIS DEED WITNESSETH and it is hereby agreed by and between the parties hereto as
follows:-

1. This agreement shall be read and construed as a Supplemental Deed to

the Principal Deed of Hypothecation.
2. The Bank agrees to enhance the limits under the said facilities as also grant additional
facilities under the new aggregate limit of Rs. …………….. repayable / payable with
interest / commission at the rate and in the manner set out in the Schedule III hereunder
written.
3. The Borrower agrees to repay the amounts due and outstanding under the said facilities
with new enhanced limits and under additional facilities with aggregate limits of Rs.
…………….. with interest / commission at the rate and in the manner as set out in the
Schedule III hereunder written provided that the Bank shall be entitled to charge the
rates of interest and / or commission at the enhanced rate or to change the rate and
mode of calculating the interest as may be intimated by the said Bank by a notice in
writing to the Borrower and on giving such notice the rate of interest shall be as
notified in the notice and not as set out in the Schedule III hereunder written.
PROVIDED further that if default is committed by the Borrower in payment of interest
/ commission on due date in respect of the said facilities or any of them, then the
overdue interest shall be paid by the Borrower with further interest / commission
thereon calculated at the same rate and in the manner set out in the said Schedule III
hereunder written or as notified by the Bank to the Borrower from the date on which
the interest / commission has become due till payment PROVIDED further that nothing
herein contained shall prejudice the right and power of the Bank herein or under the
law for the time being and from time to time in force, to enforce the payment of
overdue interest / commission or otherwise to enforce the security.

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 4. That the security of the hypothecated assets created under the Principal Deed of
Hypothecation in favour of the Bank shall with effect from the date hereof constitute
security to the Bank NOT ONLY for the payments of amounts due under or in respect
or in connection with or in any wise concerning the said facilities for principal with
interest / commission, costs, charges and expenses and other moneys under the
Principal Deed of Hypothecation BUT ALSO for the payment of amounts due under or
in respect of or in connection with or in any wise concerning the said facilities as
enhanced and under the additional facilities granted by the Bank to the Borrower with
new aggregate limit of Rs. ………….as set out in the Schedule III hereunder written
with interest / commission, additional interest, costs, charges and expenses and other
moneys, paid or incurred by the Bank for the protection, preservation and enforcement
and realisation of the securities and for recovery of its dues.
5. That the power of sale and appointment of receiver of the hypothecated assets as also
the right to get an ad-interim receiver appointed in case of filing of the suit or taking
action by the Bank for enforcement of its security created under the Principal Deed of
Hypothecation and all other powers, provisions, terms and conditions contained in the
said Principal Deed of Hypothecation shall extent and continue to remain in force and
be applicable and available not only for payment of the amounts due under or in respect
of the said facilities granted under the principal Deed of Hypothecation as set out in the
Schedule I hereunder written but also for the payments of the amounts due under or in
respect of or in connection with or in any wise concerning the said facilities as
enhanced as also the additional facilities with new aggregate limit of Rs.
…………………….with interest / commission calculated at the rate and in the manner
set out in the Schedule III hereunder written as also for the payment of costs, charges
and expenses and other moneys payable by the Borrower to the Bank in the premises in
accordance with the terms thereof.

That the Borrower doth hereby confirm in all respects the said Principal Deed of
Hypothecation as modified hereunder.

That this agreement shall be read and construed as Supplemental to the Principal Deed
of Hypothecation.

IN WITNESS WHEREOF, the Borrower has executed these presents the day and the year as
hereinabove written.

SCHEDULE- I REFERRED TO ABOVE

Facility Amount/Limit Repayment Rate of interest / Rests whether

schedule / commission monthly /
instalment quarterly / half-
yearly etc.

1.

2.

3.

4.

5.

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 SCHEDULE-II

PART-A
Description of Machinery including brand and year of No. of machines Identification
make marks, if any

PART-B

Specify the stocks / raw materials etc.

SCHEDULE-III REFERRED TO ABOVE

Facility Amount / Limit Repayment Rate of interest / Rests

schedule / commission whether
instalment monthly /
quarterly /
half-yearly
etc.
1.

2.

3.

4.

5.

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IN WITNESS WHEREOF, the Borrower has executed this Agreement on the day and the Year first
hereinabove written.

SIGNED AND DELIVERED by the within

named Borrower
Shri/Smt………………………….. as Sole
Proprietor/Proprietress of
M/s…………………………………
SIGNED AND DELIVERED by
1)……………………………………
2)……………………………………
3)……………………………………
for and on behalf of
M/s………………………………………
SIGNED AND DELIVERED by Shri
………………………………… in his capacity as
Karta of ……………………………………HUF
THE COMMON SEAL of the abovementioned
Company has been hereunto affixed pursuant to
the Resolution of its Board of Directors passed in
that behalf on the …………….. day of …………
200... in the presence of
1…………………………………….
2…………………………………….
Director(s)/Secretary of the Company who have
in token thereof hereunto subscribed their
respective signatures.
THE COMMON SEAL of the within named
Society ltd. Has been affixed hereunto pursuant to
the Resolution passed at its Meeting held on
……………………………. in the presence of
1………………………………………….
2……………………………………………
who have executed
THESE PRESENTS

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