PLANTERS (BANGLA­DESH) LTD. Vs. MAHALUXMI BANK LTD.

JUDGEMENT

(1.) This appeal arises from Appeal No.11 of 1967 disposed of by the High Court Division on 20 March 1983.

(2.) Respondent No.1, Mahaluxmi Bank Limited (in liquidation) instituted Mortgage Suit No. 26 of 1960 in the 1st court of Subordinate Judge, Chittagong against respondent No. 2, Hill Top Tea Company Limited (in liquidation) for foreclosure of mortgage on the total claim of Tk.6,40,000/-. Under the provisions of the Banking Companies Ordinance, 1962 the suit was transferred to the Dhaka High Court. Appellant, a public limited company, purchased the entire assets of the defendant company in 1959 and was, therefore, joined as a defendant in the suit.

(3.) On 29 March, 1927 one Sarada Kripa Lala sold the suit properties to Dr. Beni Mohan Das who mortgaged them to the plaintiff-Bank on 31 March, 1927 for Tk. 75.000/- only and the latter transferred his rights, title and interest in the suit properties to Rangapani Tea Co. Ltd. Without mentioning the mortgage the transferee company and the mortgagor sold their right, title and interest in the mortgaged property to the plaintiff-Bank, on 28 August, 1935 for Tk.1,25,000/-. The plaintiff Bank which was put in possession of the properties invested further sums of money thereon. Defendant Hill Top Tea Company Limited purchased the properties with all their Machineries for Tk. 4, 00,000/- which was borrowed from the Model Bank Limited. The defendant company approached the plaintiff Bank for loan. One S.N. Mookerjee who was Managing Director of the defendant company and also a Director of the Plaintiff Bank succeeded in obtaining the loan of Tk. 400,000/- from the Bank by depositing the title deeds to the Bank, as a security against, the loan. Under section 114 of the Companies Act, 1913 the mortgage was registered. Having failed to recover the principal or interest, accruing thereon amounting to Tk. 2,40,000; the plaintiff Bank instituted the aforesaid suit,