1993 (7) TMI 83

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....espondent No. 2 for construction of a vessel and for fitting a marine engine in the said vessel. The amount was secured by respondent No. 2 executing an agreement of hypothecation of the vessel in favour of the Bank. The vessel was used by respondent No. 2 as a fishing trawler. The amount advanced by the Bank was more than Rs. 2,60,000/-. Respondent No. 2 used the vessel for smuggling activities. ....

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....of goods. The auction sale of the vessel was after the order of confiscation was passed and it hardly requires to be stated that such auction sale can never be subject to the right of the pledgee. It is difficult to imagine how the Bank can ever claim that the proceeds of the auction sale of the vessel should be handed over to the Bank in satisfaction of the amount due for respondent No. 2. A refe....