AS/45/1950 of NARAYANA PILLAI Vs CENTRAL BANKING CORPORATION OF TRAVANCORE LTD on 6 June 1951

Judgment.

(Deli-rered by theChief Justice).

Defendants 4 and ? are the appellants.The revrn:r.erri~neytransacti~ns betv,ee::.1 the plaintiff Baltl: and the first defe:1dantBank.Theae cronsis tedof everdraft}:l gra:1ted by the pJaintiffto the 1et defendant. Defe!1dantf'S 2 te 8 were DiI·ect0r5 ef thefirst defendant.Ae; security fsr the~verdraft, certfl.i:1 pr@mis-sory notes .andno rtgages o2hype thecationswere assigned by the°-i?- :.Jgt;~ d•e-?en....d·-cn..i....t; in....... a-C\:•e .,u1.t ' i• t ihei p}. +llaki•t1.... 2 -- •Defendant~ 2 to 8had also executed an agreev:ient making themBelves resp@naible i'iil rthe dies charge@f allrn9ney cl.ebts due by tire fi r~t defendant :Ba:1kto the plai::-1tiff Bank.

2. The pl2inti£ filed a suit on one ofthe hyethecaticnsvthichv,11a the subject nF,tte·,.@i' the aei@anent de by the firstdei e:1dant Ba!'Jk.The auit wasO. s.133/1109::m the file@:f' theDis trict Curt at Allenpey.It was decreed fr 3.7000 dd.Subseubsebsesee-9

Subseubsebsesee-9

$

..quot to the decree tee hypo5?ec was brought tosale.T.hiae."" A-•,-I, ..,vrns 1:1..Ll.12· vmen priceswere lew.At""GYLecourt sale,he re weren®sutside \Udders and theref@re the plaL1tiff :Bank purchased t1-":..ehy_p@the ca f~ r [REDACTED] is stated tha.t sub sec_:_uent t@ the:purchase, f@r alJautQ years the pl'@perty vraa .ker;t in the posses-eien@f theplaintiff bank and that certain L:r_[;:rovm!lenta altrnwere effected t~ the J;r@perty.e arhet c© nc ern ect -..n th thi z"C Mge •·nect af thequestien.•

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3•Di[•]rec ..+ 1 y1:i• •he sa e1t1HL-1c p1ace,t•h•e pr1•ceGIr,.l..:.".t.e r,r-:::'._;er::;':r'sold as credited i fur@f the firEJ t defe1xla:1-t :SEU2.::.T.::isinciicates that the trr,.nsacti:m soCar as the assinen5o? the•:p h·•e01av...2.on? as cone 0rned::;·erm. rlr.'=J. ..+ de .@· :1 h·-.'1 ta e .1,-l1· ne yearslater,Yihcm pr\cesvrnrc soaring up th.e plain2ti27 pa:: sld the rs-erty fsr s.8000.Ti-1.P c@nte::ti~n urged@!'11)ehalf0:f the nr1iella!'! tstefD :r-e chis court is tl.at the I)lai:1tiff bank is lia'ble t~J acco'.lntI~;)r+., ·lll.E: R.s.80O0a.nd....vegi..ve crec't .l 't 1."or it. '1.r1 i. +. ..s acc:Dtrn~'s re a1t' .1ngtrtltG ove:rdroft granted t-~the fi r5t dcrenc.Tant1Ja:1k.0::1 the fnce@fit, this c:cmtenti~n carmsit te accepted a.swell faun~l.ed and tbat i;::;wlmt the 9©ul"t beJ:Jiw )1,~s held.If the sale v1as rm:rel:,r for a:-i®ili.nalasunand i2 theprice realiz;ec1 at the sale1:""iz. I?s.1765 edd bad beencredited i::1 the acciunts af th_,..el,·-·)1..-.·c..."l.1· ,•,•~+..-· ·~"' -f" n.J..)a,...,.i_,....,1.·Y),.._ f'- Ca7-•"'~_,u1-~ ~=-·? th.e 1stcl.efe:1da::1t ba11k, it:mig.½t1)e said that tho I}a:r.tieis recnrded that ther,urclinae ef the propertywas purely nominal and that so long as thepJ..aintif:ebank retained pef:'Ssessiiaen of the pr@1ierty, itwas bound taacc®unt fgr tlw incsme and ultimately for the price realised her. theproperty was sold 9 years later.:Sut that wasnot v,t-a t bay.9 ened •TheI:1fDmen -c."G' -llo sa c1...i,,;.,.:; .i1C .r; a1 co"k'1-lc pr1• c e e.rr, t"ne prepe r1::,r'Y2:1z c. red .1 ti.,_GCatinfa,n--,ur 3f· the fi !'flt defe:.1dant 3a11lc a::1d there wasn:1 e:.-:c1Clf the trans-2.cti@n s® far as the lintif al ras c:;incerned.In tl1.e circ~t:lfrtanc:ewe. are satisfied that the vier taken by the csurt belinr tl1r1.t tl:e glai::1'-tiff bank is niJt li&c.ble t~ accsunt f@r Rs.8000 !'eali sed by sale::;f ther,r:;r,erty sale9 year:seiul seugn et t& the court sale is coreci.¢• Te a±penal iu theref~re clii:iciisseclvvithestBts.6tl_: June1051.....,.,_3a_./•C•-_ .:..J..a-ta£-...--i ...... P ~");a~-•:,rL .LC'."a-itz• ~,JC?-..ie?..... JtJ...,ui.i.tcet:;:r'i::iCsa. /•••I.,5.1c,...;e"'.1_;.:c,JUaC.t:,G•__,,~.\. rd-.. '.a ('!°f(Truecopy)~~ -·.~~·· ...I"' .--·. ~. ;tt:'. { \..:.."'°"'· \ "'1\.-,\ '-IJ}... r::'t'.· /\!r.J.r"'i{ - Qco(Ura

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