STATE BANK OF INDIA KANPUR Vs. DEEPAK MALVIYA

JUDGEMENT

(1.) This is defendant's second appeal. The facts necessary for the decision of the appeal are as under :-Deepak Malviya a minor aged about 14 years, Alok Malviya a minor aged about 12 years, Km. Reeta a minor aged about 15 years, all sons and daughter respectively of late Sri Bhola Nath Malviya resident of Kanpur through their natural guardian mother Smt. Sheela Devi and Smt. Sheela Devi herself filedOriginal Suit No. 80 of 1974 against Agent, State Bank of India, Kahoo Kothi Branch at premises Nos. 55/57 in the Court of 1st Civil Judge, Kanpur. In the aforesaid suit the plaintiffs claimed the following main relief :(a) A decree for redemption of the said pledge to secure the pledged ornaments returned back in favour of the plaintiffs on payment of principal amount and the interest thereto, be passed in favour of the plaintiffs and against the defendant and whereof the custody of the ornaments in suit be secured in favour of the plaintiffs through Court Agency.The plaint also contains the details and description of the ornaments pledged with the defendant Bank under Gold Loan Account No. 16/ 13 dated 14-7-1971. The defendant State Bank contested the suit. In the written statement it was contended that late Bhola Nath Malviya had obtained a loan advance from the Bank. The total amount due from him is about Rs. 6 lacs. The State Bank has already filed a suit No. 85 of 1974 in the Court of Civil Judge, Kanpur for recovery of a sum of Rs. 5,54,972.11 paise and it was also contended in the written statement that since the assets of gold ornaments were the assets of Bhola Nath Malviya, the same are liable for the debts due against him, the Bank has got a banker's lien against the securities held by it in any account whatsoever.

(2.) It may also be mentioned here that during the pendency of the suit in the present matter before the trial Court, the suit filed by the State Bank of India against the plaintiffs was decreed for an amount of Rs. 5,54,972.11 paise on account of a cash-credit facility taken by late Sri Bhola Nath Malviya on 6-9-1968 to the extent of Rs. 75,000.00 under which ultimately the limit of loan advancement by the Bank in favour of late Sri Bhola Nath Malviya reached a figure of Rs. 3,75,000.00. The said cash-credit account was secured by pledging of stock of raw materials and finished goods and the said cash-credit account was also secured by deposit of the title deeds of premises No. 84/ 85, Factory Area, Fazalganj, Kanpur. The equitable mortgage of the aforesaid property was created on 5-7-1969, the particulars of which were given in the plaint. This loan was taken for M/s. Malviya Engineering Works of which Bhola Nath Malviya was the proprietor.

(3.) On the pleadings of the parties, the trial Court framed issues out of which a reference of issues Nos. 4 and 10 is sufficient for the disposal of the present second appeal.Issue No. 4 : Can the defendant Bank claim lien onl the ornaments in suit for money due to it in other accounts?Issue No. 10 : Whether there are outstanding dues of defendant against Bhola Nath Malviya other than dues in respect whereof ornaments were pledged? If so, its effect?