The central legal point established in the judgment is the interpretation and application of Section 171 of the Indian Contract Act, 1872, regarding the bank's right of general lien over pledged jewellery for all present and future indebtedness and liabilities.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, calling for the records on the file of the respondent pertaining to its auction notification bearing no. nil dated 19-03-2021 released in Thina Tanthi bringing petitioner jewel pledged loan account nos. 214003549 dated 30.10.2019 2028009423 dated 06.11.2019 and 2028009318 dated 30.10.2019 and quash the same and consequence direct the respondent to hand over the Jewels to petitioner on receipt of the loan outstanding amount specified in the notice that is a sum of Rs.4,69,564/- within a time frame that may be fixed by this Court.)

1. This Writ Petition was filed challenging the auction notification issued by the respondent Bank and for a consequential direction for the respondent Bank to hand over the jewels that were pledged by the petitioner for the loan availed by the petitioner which the petitioner was willing to repay back to the respondent Bank.

2. The issue that is involved in the present Writ Petition has been captured in the earlier order that was passed by this Court on 08.11.2021 and is extracted hereunder:

“This writ petition has been filed challenging the auction notification issued by the respondent Bank dated 19.03.2021 and for a consequential direction to hand over the jewels that were given as security by the petitioner while securing the loan from the respondent Bank.

2. The petitioner had availed agricultural loan from the respondent Bank. There were three loans that were availed by pledging the jewels. The amount became due and payable and a demand was made by the respondent Bank through their notice dated 11.01.2021. The petitioner sought for some time to repay back the loan and in the meantime, the respondent Bank proceeded to issue a notification by bringing the jewels pledged by the petitioner for public auction. The same became the subject matter of challenge in this writ petition.

3. When the matter was taken up for hearing today, the learned counsel for the petitioner submitted that the entire amount that was demanded by the respondent Bank has been paid by the petitioner through three demand drafts all dated 03.04.2021. The learned counsel, therefore, submitted that in view of the repayment of the loans, the respondent Bank should not proceed with the public auction. The learned counsel further submitted that in view of the settlement of the loans, the respondent Bank must be directed to hand over the jewels that were pledged at the time of availing the loan.

4. Per contra, the learned counsel appearing on behalf of the respondent Bank submitted that the demand drafts have been received from the petitioner and in view of the same, the respondent Bank will take a decision to stop the public auction, which was slated to take place today, ie., 08.03.2021 at 3.00 p.m. The learned counsel further submitted that insofar as the consequential relief sought for by the petitioner to return back the jewels is concerned, the same is not sustainable since the petitioner has availed of other loan facilities from the respondent Bank and the respondent Bank has a general lien over the jewels pledged by virtue of Section 171 of the Indian Contract Act, 1872. The learned counsel further submitted that even as per the terms and conditions of the jewel loan, the jewels can be retained as security for the other loans availed by the petitioner.

5. The learned counsel appearing on either side brought to the notice of this Court some reported judgments on this issue.

6. In the considered view of this Court, the consequential relief sought for by the petitioner seeking for returning back the jewels, has to be independently decided by this Court by taking into consideration the law on the point. This would require the petitioner to file an additional affidavit along with all the necessary documents in o