STATE BANK OF INDIA Vs. V K GUPTA

JUDGEMENT

(1.) This judgment will dispose of Civil Revisions No. 334 of 1972 and Nos99, 111and 131 of 1973. Respondent No 2, Messrs. Shamrock Industries is a concern of which Shri S. Nath is the sole Proprietor. It entered into an agreement, exhibit 0-3, dated 11th November, 1968 with the petitioner. State Bank of India, herein called 'the Bank', under which the Bank agreed to advance monies to it up to a limit ofRs25,000.00 ontbe security of hypothecation of goods.

(2.) Respondent No. 2 owed certain monies to certain other creditors as well. Three decrees were passed against respondent No. 2. The decree which is involved in CR 334 of 1972 was passed on September 14, 1967 for Rs. 2693.40 (suit No. 321 of 1967) in favour of V. K. Gupta and K. N. Gupta, decree-holders. The decree involved in CR 99 of 1973 was passed on September 14, 1967 for Rs. 3,281.40 (suit No. 322 of 1967) also in favour of V. K. Gupta and K. N. Gupta. Decree involved in CR 111 of l973 was passed on 28th November, 1967 for Rs. 3,335.40 (suit No. 497 of 1967) in favour of Mrs. Kamla Gupta, and V. K. Gupta. The decree-holder took out executions. Warrants of attachment in the first two decrees (suit No. 3^1 and 32^ of 1967) were duly served on the judgment debtor and the Pay & Accounts Officer, Ministry of Works, Housing and Supply on January. 2, 1969 for the attachment of monies due to respondent No. 2 from the said Ministry.

(3.) On January 17, 1969 respondent No. 2 executed an irrevocable power of attorney, exhibit 0-16 in favour of the Bank authorising it, inter alia, to .demand, receive, transfer and assign funds of any description whatsoever, to which respondent No. 2 is now or may at any future time be . entitled and "to apply the prceeds in satisfaction of any monies due from it. Clauses 5, 6 and 10 of the said exhibit 0-16 which are relavant in this connection read as follows :