JUDGMENT - S. N. VARIAVA, J. :---This is a petition taken out by the Custodian against the Karnataka Bank for a direction that the 1st respondents be directed to credit a sum of Rs. 2,75,66,822.99 into the attached account of respondent No. 2. Respondent No. 2 is Fairgrowth Financial Services Ltd. Respondent No. 2 was notified on 2nd July, 1992.

2. The Kasturba Road Branch, Bangalore of the 1st respondent had granted to the 2nd respondent an overdraft facility in a sum of Rs. 2.50 crores. As security, the 2nd respondent had executed in favour of the 1st respondent a Power of Attorney dated 1st December, 1990 and a Deed of Hypothecation dated 21st March, 1991.

3. In pursuance of this facility, the 1st respondents had allowed the 2nd respondents to withdraw the following amounts :

(a) Rs. 1.50 crores on 4th December, 1990;

(b) Rs. 0.50 crores on 31st March, 1991; and

(c) Rs. 0.50 crores on 15th October, 1991.

4. On the date the 2nd respondent got notified, under the said overdraft facility, a sum of Rs. 2,75,66,822.99 was due and payable by the 2nd respondent to the 1st respondent. It is an admitted position that after the date of the notification, the 1st respondent transferred all ba

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