RAVI KANT ABROL Vs. PUNJAB NATIONAL BANK LTD

JUDGEMENT

(1.) PETITIONER is seeking the issuance of a writ of certiorari to quash the order of respondents whereby an amount of Rs. 1, 00,000 out of the amount of gratuity has been kept under bankers lien by respondent No. 1

(2.) PETITIONER was an employee of respondent No. 1 who retired on 31.7.1997 as Asstt. Manager. His gratuity to the tune of Rs. 1, 94,000/ - as post -retiral benefit was sanctioned by the respondent which is evident from the letter of the Manager, Punjab National Bank, New Delhi dated 14.8.1997. The petitioner presented cheque No. 015851 dated 20.8.1997 for an amount of Rs. 1,94,000 before respondent no. 1 in order to receive the payment of gratuity amount. The cheque was returned alongwith memo of the bank with remarks that "the amount of Rs. 1, 00,000 kept under bankers lien because of the liability of Shri R.K. Abrol in the account of M/s Malhotra Wires and Nails as guarantor". Petitioners claim is that the action of the respondents for not releasing the amount is arbitrary and illegal.

(3.) RESPONDENTS have filed objections stating therein that the petitioner being guarantor to the loan advanced to M/s Malhotra Wires and Nails is under an obligation to satisfy the banks outstanding. The bank has filed a suit for the recovery of Rs. 4, 31,857.23 against the borrower and guarantors including the petitioner which is pending in the court of learned District Judge Bank Cases Jammu. In the account of M/s Malhotra Wire and Nails Smt. Sudesh Bala Abrol, one of the partners of the borrower firm is the wife of the petitioner. In view of the deed of guarantee executed by the petitioner in favour of the bank and in view of the loans availed of by the firm (Malhotra Wire and Nails) the bank is within its rights to keep under its lien an amount payable to the petitioner to the extent of his liability towards the bank.