Bank guarantee can qualify as security, and banker's lien does not bar production of relevant documents.

Security for withdrawal of deposited was construed broadly to include a bank guarantee furnished by the applicant itself, because security need not be limited to a third-party surety and may take the form of an unconditional undertaking that sufficiently safeguards repayment. On that basis, withdrawal of the deposited amount was permitted subject to verification of the guarantee, including liability for interest. A claim of banker's lien did not prevent an order for production of documents in the defendant's possession or power where they related to the matter in issue, and photocopies with an undertaking to produce originals when required were accepted.

---

---

Issues: (i) Whether a bank guarantee executed by the applicant itself could be accepted as security for withdrawal of the deposited amount. (ii) Whether documents in the custody of the defendant could be ordered to be produced despite the claim of banker's lien.

Issue (i): Whether a bank guarantee executed by the applicant itself could be accepted as security for withdrawal of the deposited amount.

Analysis: The term "security" was construed broadly as something that secures and makes enforcement of the obligation more certain and safe. It was held that the concept does not necessarily require a third person standing as surety. The Court noted that securities are often accepted in the form of bonds, mortgages, and bank guarantees, and that a bank guarantee unconditionally undertaking liability in favour of the Court satisfies the requirement of security. The objection that the security must emanate only from a third party was rejected.

Conclusion: The bank guarantee furnished by the applicant was accepted as valid security, and withdrawal of the deposited amount was permitted on verification of the guarantee, including liability for interest.

Issue (ii): Whether documents in the custody of the defendant could be ordered to be produced despite the claim of banker's lien.

Analysis: Under the rule governing production of documents, the Court may direct production of documents in a party's possession or power if they relate to a matter in issue. The claim of banker's lien did not bar an order for production, since directing production in court does not extinguish any lien. The Court also held that photocopies would suffice, with an undertaking to produce originals whenever required.

Conclusion: The application for production of documents was allowed, and the defendant was directed to produce certified true photocopies with an undertaking to produce the originals when called for.

Final Conclusion: The applications were allowed, the applicant was permitted to withdraw the deposited amount on furnishing acceptable security, and the defendant was directed to produce the required documents subject to the stated safeguards.

Ratio Decidendi: "Security" is not confined to a third-party surety and may include a bank guarantee or similar undertaking that adequately assures performance or repayment.

---