Judgement

GROVER, J.:- This is an appeal be certificate from a judgment and decree of the Patna High Court in a mortgage suit.

2. The facts may be stated: On August 1, 1953 the defendants, who are respondents herein, entered into an agreement (Exh. P-9) with the plaintiff Bank by which a cash credit account was opened, the limit being Rupees 3,50.000/- The defendants hypothecated in favour of the Bank the goods described in general terms in the Schedule attached to the agreement. The arrangement was that the defendants were to be at liberty to sell and dispose of the goods which had been hypothecated in the ordinary course of their business but they were bound to replace the goods disposed of by new goods of equal value, According to Clause 5 of the agreement the hypothecated goods were to be stored or kept at the risk of the defendants and at their expense in good condition. The interest was payable at a certain percentage over the Bank rate the minimum being 5% . The agreement was to operate as a continuing security for the balance from time to time due to Bank and also for the ultimate balance which would become due in the cash credit account. It may be mentioned that we have refe