1956 (6) TMI 7

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.... the paramount lien claimed by the plaintiff and denied by the trial court: "10. The first defendant holds 30 preference shares and 15 ordinary shares in the shareholding of plaintiff bank, as detailed in schedule C below. For all amount due to the bank from the first defendant, the bank has a first and paramount lien on these shares under article 36 of the articles of association of the bank, and the bank claims to enforce the said lien by calls of these shares in enforcement of the amounts due to the bank, as aforesaid. 11. The third defendant is impleaded in this suit as he also claims a lien over the said shares of the first defendant. The third defendant's lien, if any is available to him, can only be had subject to the first and....

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....in the name of each member (whether solely or jointly with others) and on all dividends declared or payable in respect thereof as also upon the deposits of, or any amounts due by the bank to a member or other person, for his debts, liabilities or engagements solely or jointly with any other person to or with the bank, whether the time for the payment, fulfilment or discharge thereof shall have actually arrived or not; and no equitable interest in any share or in any deposit or money payable by the bank shall be created except upon the footing and condition that in the case of shares article 6 hereof is to have full effect. Unless otherwise agreed, the registration of a transfer of shares shall operate as a waiver of the bank's lien, if any,....

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....ated in his favour by the deposit of the shares apparently by a letter dated 9th July, 1948. That letter is not before us. The bank's reply to that letter has, however, been produced. It is Exhibit AC. dated 24th July, 1948, which is in the following terms: "As we are entitled to a first charge and paramount lien under article 36 of the articles of association of the bank we can recognise your lien on the above shares only subject to our paramount lien." The total amount claimed in the plaint is made up of amounts falling under three distinct heads and in paragraph 13 of the plaint the cause of action for the suit is stated as follows: "The cause of action for the suit arose on, from 15th October, 1947, to 2nd July, 1948, respectin....