A K MENON CUSTODIAN Vs. KARNATAKA BANK

JUDGEMENT

(1.) THIS is a petition taken out by the Custodian against the Karnataka Bank for a direction that the 1st respondents be directed to credit a sum of Rs. 2,75,66,822. 99 into the attached account of respondent No. 2. Respondent No. 2 is Fairgrowth Financial Services Ltd. Respondent No. 2 was notified on 2nd July, 1992.

(2.) THE Kasturba Road Branch, Bangalore of the 1st respondent had granted to the 2nd respondent an overdraft facility in a sum of Rs. 2. 50 crores. As security, the 2nd respondent had executed in favour of the 1st respondent a Power of Attorney dated 1st December, 1990 and a Deed of Hypothecation dated 21st March, 1991.

(3.) IN pursuance of this facility, the 1st respondents had allowed the 2nd respondents to withdraw the following amounts