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1976 Supreme(All) 346

YASHODANANDAN, B.N.SAPRU
The New Bank of India Ltd. – Appellant
Versus
The State of U. P. – Respondent


Advocates:
D.K. Sinha, for Petitioner; Standing Counsel, for Respondents.

Judgement

B. N. SAPRU, J. :- The petitioner, the New Bank of India Ltd., is a banking company carrying on its business in India. The respondents Nos. 3 to 6 applied to the petitioner bank for cash credits and offered 2535 acres of their bhumidhari land situated in village Meeduwala, Pargana and Tehsil Najibabad, district Bijnor as security. Apart from offering their land as security, they also offered certain movable properties as security. This was some time in the year 1969. This offer was accepted by the Bank and a mortgage of the aforesaid land was executed in favour of the bank and accordingly a cash credit account No. 127 was opened by the Bank in their favour. According to the Bank, a sum of Rs. 7,50,557.55 P. was outstanding in the aforesaid current account as on September 8, 1976 excluding interest from 1st July, 1976. Respondents Nos. 3 to 6 again requested the petitioner Bank to grant another cash credit limit of six lakhs. This offer was again accepted and a cash credit account No. 129 was opened on 8th October, 1969, in the name of Seth Mohan Lal, Hindu undivided family, to be operated by Seth Mohan Lal as karta of the family. As security for the aforesaid amount Respon


















































































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