VIJAYA BANK Vs. UNITED CORPORATION

JUDGEMENT

(1.) Vijaya Bank Ltd., had its branch and activities in Cochin, among other places. Consequent on the enactment of the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980, later replaced by Act 40 of 1980, the assets and rights became vested in the Vijaya Bank, the plaintiff in the case.

(2.) Messrs. Joshi Trading Company was one of the constituents of the Bank. That firm had extensive dealings in rubber. It can be conveniently referred to as the firm. The firm had availed of various facilities from the Bank, including the pledging of goods and borrowing on the security of the goods pledged.

(3.) The 1st defendant had a variety of business activities. The partners of the firm were partners of D.B. Khona and Sons, well entrenched in business as shipping and clearing agents. In the light of the business transactions the Bank had with the firm, it entered into an arrangement with the 1st defendant for the storage of the goods, evidenced by Ext.A-3 letter, dated 12th April, 1976.