SYNDICATE BANK Vs. RALLIES INDIA LIMITED

JUDGEMENT

(1.) This appeal is directed against the order of a learned single Judge of this Court passed on the Original Side dismissing an application moved by the appellant under Order XXI rule 58 read with Section 151 of the Code of Civil Procedure objecting to attachment of land belonging to the judgment debtors, Messrs. Arden Farms and Shri P. K. Padmanabhan.

(2.) Messrs. Rallies India Ltd., respondent No. 1, obtained a decree for Rs. 1,46,038 with interest rendente lite, future interest and costs in suit No. 351 of 1969 brought by the said company against M/s. Arden Farms and its proprietor Shri P. K. Padmanabhan. In execution of the said decree in Execution case No. 92 of 1973 M/s. Rallies India Limited obtained orders for attachment of agricultural land belonging to the judgment debtors known as M/s. Arden Farms in Mehrauli. These attachment orders were passed by a learned single Judge of this Court on the Original Side on February 21, 1974. The attachment was duly effected. The appellant was informed by M/s. Rallies India Limited about this attachment. On March 18, 1974 the appellant filed I.A. 1601 of 1974 in this Court objecting to the attachment. It submitted that the attached property belonged to Shri P. K. Padmanabhan but he had mortgaged the same in favour of the appellant by a registered mortgage deed dated February 28, 1967. The mortgage was effected by way of security for facilities granted by the appellant Bank to the said Padmanabhan. In March 1967 Padmanabhan had acquired a further 20 bighas 8 biswas of land in village Mehrauli comprised in Khasra Nos. 243, 244 and 245. This land was also mortgaged with the appellant bank. As Padmanabhan's account with the Bank became irregular and he was aot able to square up his account, the appellant wanted to take legal action. Padmanabhan thereupon executed a general power of attorney in favour of the appellant on September 1, 1970 authorising it to manage, supervise, sell, dispose of the entire mortgaged property and apply the sale proceeds towards the liquidation of the amount due from him. At that time Padmanabhan's liability to the appellant is said to have been in the neighbourhood of Rs. 10,00,000. A suit was also filed by the appellant in this Court being suit No. 326 of 1972 for recovery of this amount from Padmanabhan. It was, however, withdrawn on December 12, 1973 as one H. S. Sandhu who was the guarantor of Padmanabhan offered to compromise. The said Sandhu paid Rs. 8,75,000 to the appellant on March 31, 1973 towards part satisfaction of the liabilities of Padmanabham and transfer the mortgaged property to Sandhu or his nominee after completing the requisite formalities like obtaining permission from the Delhi Development Authority and clearance certificate from the Income-tax authorities. In these circumstances, it was contended, Padmanabhan had no interest left in the attached property and the same be released. The application was dismissed. The learned single Judge noticed in that order that Mr. Sandhu who appeared as a witness for the appellant admitted that Rs. 8,75,000 had been paid by him to the appellant in full and final settlement of the dues of Padmanabhan. From that order the appellant has preferred the present appeal.

(3.) It may be noticed that Padmanabhan has in the meantime been declared an insolvent and an Official Receiver has been appointed of his estate. The present appeal has been brought against M/s. Rallies India Limited and the Official Receiver.