Salil Kumar Datta, J. - (1.) This is an appeal against the order of Ajay Kumar Basu, J. dated May 19, 1977 passed in Suit No. 241 of 1968.
(2.) The Bank of India Ltd. instituted the said suit against the National Iron & Steel Co. Ltd. (hereinafter referred to as the Company) inter alia for a decree for Rs. 28,85,975.16 p. and interest due on account of moneys lent and advanced by the Bank to the Company and interest thereon and for a declaration that the stocks of the iron and steel, and stores, raw or manufactured or in process of manufacture, and products, goods or movable properties of any kind stored in the premises or godown of the Company or wherever situated, present and future book debts and claims, all stand hypothecated and charged by way of first and paramount charge in favour of the Bank for repayment of its aforesaid dues. The defendants Nos. 2 to 8 were also impleaded as guarantors against whom also the decree as aforesaid was prayed for, as they were guarantors to the loans and advances made by the Bank to the Company. On the application of the Bank in the suit, Mr. B. K. Chakraborty, Barrister-at-law, was appointed Receiver of the hypothecated and pledged goods of the Company by an order passed on Feb. 26, 1968, According to the survey conducted by the Superintendence Company of India Ltd. in 1968 after the institution of the suit, the total value of pledged and hypothecated goods was Rupees 39,89,589.98 p. even apart from imported pledged goods. In 1970 the Receiver sold portion of the said goods and realised Rs. 21 lacs which, less charges, was made over to the Bank. There was a further sale in pursuance of the subsequent order of June 1, 1976 for Rupees 56,000/-.
(3.) The said suit is pending. It appears that under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969 the undertaking of the Bank had thereby vested in the Bank of India, a body corporate which has been added as a plaintiff in the suit.;