Law: Specific Relief Act (I of 1877)

Section: 22

Law: Civil Procedure Code (V of 1908)

Section: 21

(a) Specific Relief Act (I of 1877) S. 22-Jurisdiction to decree specific performance - Held, discretionary - Court not bound to grant such relief merely because it is lawful to do so. (b) Civil Procedure Code (V of 1908) S. 21 - Objection to invoke contractual jurisdiction - Can be waived by defendant. Hira Lal Patni v. Sri Kali Nath A I R 1962 S C 199 and Ramanlal and another v. Ramgopal A I R 1954 Raj. 135 ref. Dates of hearing: 15th and 16th April 1970.   JUDGMENT The Bank of Bahawalpur Limited (hereinafter called the plaintiff) filed a suit on 10-10-1964, in the Court of the learned Civil Judge, 1st Class Wazirabad (Gujranwala), for the recovery of Rs. 31,043.67 against (1) Punjab Tanneries (WZD) Limited G. T. Road, Wazirabad; (2) Sh. Aziz Ahmad, Managing Director and (3) S. Aftab Ahmad, Director. The case of the plaintiff was that the defendants applied for a cash credit limit and the same was granted to them to the extent of Rs. 80,000, as on 13-1-1960. It was understood that the defendants shall adjust-the cash credit from time to time and by way of collateral sec-irity they executed the following documents:- (i) On demand promissory-note for Rs. 80,000 dated 13-1-1960; (ii) Letter of continuity for Rs. 5,000 dated 13-1-1960; (iii) Letter of arrangement dated 13-1-1960; and (iv) Cash credit pledge letter dated 13-1-60.-The defendants' goods held by the plaintiff in the ash credit account were pledged with the plaintiff. The charge of the plaintiff to the extent of Rs. 80,000 was also got registered with the Registrar. Joint Stock Companies on 7-4-1960. According to the plaintiff, the defendants removed the security i.e., the pledged goods forcibly and misappropriated and destroyed the same with the result that the Bank was deprived of any effective control over it. The defendants executed a power of attorney in favour of the plaintiff bank authorising it to collect Rs. 5,000, from Messrs Leather & Allied Industry Limited and authorised the plaintiff to adjust Rs. 3,060, towards the balance in the cash credit account and to pay Rs. 2,000 per month to the defendants so as to provide them for their expenses. This arrangement continued till 9-1…