M. L. PENDSE, C.J. - An Interesting question as to whether a banking company under the Banking Regulation Act, 1949, can be treated as a "dealer" under section 2(1)(k) of the Karnataka Sales Tax Act, 1957, while realising the security, falls for determination in this appeal preferred by a nationalised bank. The facts which gave rise to the filing of this appeal, are not in dispute and are required to be briefly stated to appreciate the claim of the appellant-bank.

The appellant is a Government of India undertaking which was acquired by the Government of India under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The business of the appellant-bank is regulated under the provisions of the Banking Regulation Act, 1949. The expression "banking" is defined under section 5(b) and means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. The expression "secured loan or advance" is defined under section 5(n) and means a loan or advance made on the security of assets, the market value of which is not at any time less than th