STATE BANK OF INDIA Vs. GOUTMI DEVI GUPTA

JUDGEMENT

(1.) This is a revision by the decree-holder against the order by which the application of judgment-debtor No. 3 Rajesh Kumar Agarwal (hereinafter to be referred to as J. D.) raising two-fold objections has been allowed.

(2.) The decree-holder is State Bank of India. It has obtained money decree in Civil Suit No. 1-B of 1992 on 30-4-1997 against Smt. Goutmi Devi Gupta as Proprietor of Jyoti Dal Mill and also against the J. D. He was the surety of the principal borrower in the loan taken by her from this Bank. The liability of the judgment-debtors under the decree is "joint and several". The principal amount payable under this decree is Rs. 1,95,314.00 and the interest payable thereon is 12 per cent per annum from 16-12-1991. It is also stated in the decree that decree-holder would be free to sell the hypothecated goods and this decree would be the first charge on the hypothecated property. There is no direction that the decree-holder would first proceed to recover the decretal amount from the hypothecated property and then against the properties of the J. D.

(3.) The J. D. had current account No. 1/169 in the plaintiff Bank in the name of "Classic Cables" of which he was the proprietor. On 29-3-1996 the J. D. had executed an agreement in favour of the Bank in Form A and had pledged his two Fixed Deposit Receipts (FDRs) of Rs. 50,000/- each. On 17-8-1998 Arunima Agarwal daughter of the J. D. had executed an agreement in favour of the Bank in Form A-2 and had pledged two FDRs of the total amount of Rs. 3,51,041.00. The language of both the agreements is almost identical. The relevant clause of the agreement executed by Arunima Agarwal is quoted in extenso as under :-