TaxTMI 
TaxTMI 
1994 (9) TMI 358
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....o notice briefly the facts in the background. The plaintiff bank filed a suit under Order 37 Civil Procedure Code against the three defendants namely, Mr M.S. Handa, Mr Ashwani Kapoor and Indian Overseas Bank. The plaintiff is a banking company incorporated in England but is having its branch offices at several places in India including one at 17, Sansad Marg, New Delhi. Vide order dated 143.93, this Court had allowed unconditional leave to defend to all the three defendants. There was an appeal preferred to the Division Bench being Fao 56/93. It was dismissed by the Division Bench on 17.8.93. The plaintiff had also filed a Special Leave Petition before the Supreme Court. Vide order dated 26.11.93, ( Civil Appeal No. 7172-74 and 7175 of 199....
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.... "NOW Therefore this guarantee witnesseth that we Standard Chartered Bank, hereby hold firmly bound unto the Registrar of the Hon'ble High Court of Delhi at New Delhi in suit No. 935 of 1990 for payment to it on demand without demur the amounts released to us as per the order of this Hon'ble High Court upon we being unsuccessful to suit no. 935 of 1990. We, standard Chartered Bank further guarantee that the guarantee herein contained shall not be effected by any change in the constitution of our bank and it is hereby agreed by us that this guarantee shall remain in full force till the disposal of the suit." (5) On defendant No.3 having been noticed it has objected to the acceptance of this bank guarantee as security. The ....
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....ecurity means. the instrument of protection or security; & c. .........The word security is also defined as meaning a person who becomes the surety for another or who engages himself for the performance of another's contract; one who becomes responsible for the obligation of another; a surety ; and it may be used in the sense of surety, i.e. a bond with surety or sureties." (8) BLACK'S Law Dictionary, 6th Edn. defines security as protection; assurance; indemnification. The term is usually applied to an obligation, pledge, mortgage, deposit, lien, etc. given by a debtor in order to assure the payment or performance of his debt, by furnishing the creditor with a resource to be used in case of failure in the principal obligation.....
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....High Court of Allahabad has made certain observations, obiter in nature while decking with the case of an application seeking getting aside of an ex parte decree passed by a court of small causes. The observations vide para 7 are "WE may observe that in cases in which a personal liability to pay a certain amount has been created by a decree, the courts should not ordinarily accept a personal bond of the debtor himself be- cause such a bond gives no security worth the name to the decree holder. The bond merely creates a personal liability which has already been created by the decree itself." (emphasises supplied) Vide para 7 there are the principles stated which lend strength to the view which I have already taken. To quote : ....
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.... extend to and cover the amount of interest accrued or to accrue on the principal amount also. The plaintiff bank is permitted to withdraw the amount with this condition. A 7548/94 (15) This is an application under Order Ii Rule 14 Civil Procedure Code seeking production of certain documents from the custody of defendant No.3. The only ground on which the prayer for production of document has been resisted- by defendant No.3 is that on these documents the defendant No..3 holds a banker's lien and Therefore cannot be compelled to produce the documents on record of the court. The resistance cannot be sustained. Under Order Ii Rule 14 Civil Procedure Code it is lawful for the court to order the production of such of the documents in the p....