PUNJAB NATIONAL BANK Vs. RAM DUTT SHARMA

JUDGEMENT

(1.) Heard Sri R.N. Singh, Advocate, for appellants and Sri P.K. Sinha, Advocate, for respondents.

(2.) This is defendant's Second Appeal under Section 100 of Code of Civil Procedure, 1908 (hereinafter referred to as "Code"). Plaintiffs Sri Ram Dutt Sharma and his wife Smt. Saroj, instituted Original Suit No. 579 of 1993, impleading New Bank of India, Baghpat, Sri Chhote Lal Sharma, son of Sri Khacheru Singh and Smt. Saroj, wife of Sri Shiv Charan as defendants. The relief sought in the aforesaid suit was a mandatory injunction directing defendant no. 1 to auction Truck No. UHN 1077, belong to defendants no. 2 and 3, and in possession of defendant-Bank towards security/ guarantee against the amount of loan, advanced to defendants no. 2 and 3, and realize outstanding dues, before encashing Fixed Deposit Receipts (hereinafter referred to as "FDRs") of plaintiffs, lying with defendant-Bank.

(3.) The plaint case set up is that defendants no. 2 and 3 are running a transport business. They purchased a new Truck in 1985 bearing Registration Number UHN 1077. The financial assistance in the aforesaid transaction was tendered by the Bank, advancing a loan of Rs. 1,50,000/-, whereagainst Truck itself was hypothecated. Besides, the plaintiffs' FDRs of Rs. 10,000/- and 70,000/- were pledged in security for a period of three years or till repayment of loan amount, whichever is earlier. There appears to be some default towards repayment of loan amount, on the part of defendants no. 2 and 3, but defendant no. 1, instead of realizing defaulted amount from defendants no. 2 and 3, by sale/auction of mortgaged vehicle, proceeded to encash FDRs of plaintiffs lying in security with the Bank, hence the suit.