G.B.PATTANAIK, J.M.MAHAPATRA
ARATIBALA MOHANTY – Appellant
Versus
STATE BANK OF INDIA – Respondent
G. B. PATNAIK,. J.
( 1 ) A short but interesting question of law that arises for considertion in this writ application is whether the pawnee not being in a position to release the pledged articles for some supervening circumstances can charge interest on the amount in question for the period for which the said pawnee was not in a position to release the pledged articles.
( 2 ) THIS question arises in the following circumstances : The petitioner pledged gold ornaments with the opposite party - State Bank of India, Bhubaneswar, and took three different loans on three different dates by executing promissory notes. It was a stipulation in the promissory note that the loan would be repaid with interest in instalments within a specified period failing which the pawnee (the Bank) would be at liberty to dispose of the pledged articles by public auction. Between 3-12-1973 and 23-7-1974 by pledging 729. 700 grammes of gold, the petitioner had taken a loan of Rs. 17,200/ -. On 2-4-1976, the petitioner wrote to the Bank to release the gold ornaments pledged under Account No. 15/557 and requested that she may be intimated the outstanding amount of the principal and the interest so that she wo
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