R.S. Tripathi, Chairperson—These are two appeals wherein the same point of law is involved and their facts are almost the same, therefore, both these appeals are being disposed of by this common judgment.

2. The Appeal No. 589/2005 has been filed by its appellants Praful Steels and another against a judgment dated 11th August, 2005 passed in T.A. No. 565/2000 by D.R.T., Allahabad, whereas the Appeal No. 591/2005 arises out of a judgment dated 11th August, 2005 passed in T.A. No. 532/2000 by D.R.T., Allahabad.

3. Brief history giving rise to Appeal No. 589/2005 is that its appellant No. 1 was a proprietorship firm doing its iron and steel trading business at Kanpur. This firm approached respondent No.1 Bank in the year 1990 for providing cash credit facility which was sanctioned with a limit of Rs.3,00,000. An agreement of hypothecation of stock as usual was executed in favour of the respondent Bank. In March, 1994 one person posing himself to be Moolchand Jaiswal alongwith one other Harish Chand Jaiswal approached the appellant firm for the purchase of Iron and Steel goods, against the value of eight demand drafts worth Rs.7,70,000. The appellant firm agreed to provide the