| Citation(s) |
|---|
| 1981 SLG 3197 = 1981 SLD 3197 = 1981 CLC 1582 |
Court of Special Judge, Karachi
Suits Nos. 178 and 179 of 1965, decided on 9th April, 1980.
Presented By: Ajmal Mian, J
Muhammad Ali Sayeed and Haider Ali Pirzada for Plaintiffs, J. II. P,ahimtoolah, Mansoorul Arfin, Afzal Nabi and K. A. Ghani for Defendants.
Suits Nos. 178 and 179 of 1965, decided on 9th April, 1980.
Presented By: Ajmal Mian, J
Muhammad Ali Sayeed and Haider Ali Pirzada for Plaintiffs, J. II. P,ahimtoolah, Mansoorul Arfin, Afzal Nabi and K. A. Ghani for Defendants.
Suit No. 178 of 1965 ASHRAF ALI-Plaintiff
VERSUS
BANK OF INDIA LTD. AND 2 OTHER-Defendants AND Suit No. 179 of 1965 ASHRAF ALI-Plaintiff versus AMERICAN EXPRESS CO. (INCORPORATED) AND 2 OTHERS-Defendants
Law: Contract Act (IX of 1872)
Section: 173, 176, 177, 178, 78
Law: Negotiable Instruments Act (XXVI of 1881)
Section: 53, 89
(a) Contract Act (IX of 1872) Ss. 173, 176, 177 & 178 Pledgee, rights and obligations of General ownership in pledged goodsRemains vested in pledgor Pledgeeacquires special property /interest in pledged goods to extent of amount of loan advanced, interest thereon, and other expenses incurred according to law but right to sell such goods accrues to pledgee on default in payment of loan amount and service of noticeGoods being once pledged, pledgee, held, does not become owner or entitled to sell good without any notice Pledged share scrips disposed of by defendant without serving notice on pledgee, with whom share not only deposited but Bank transfer forms duly verified also lodged, sale of shares, held, not legal. Jaswant Rai Maniklal Akhaney v. The State of Bombay A I R 1956 S C 575 and A. M. Burq and another v. Central Exchange Bank Ltd. and others P L D 1966 Lab. 1 ref. P. N. Krishna Pattar v. Kannambra Nayar Veetil Villa Amma Kutti, Neithlar's son Kunhunni Elaya Nayar and others A I R 1941 Mad. 249 distinguished. (b) Contract Act (IX of 1872) S. 78 PledgeShare certificates along with Bank transfer forms duly verified Held, constitute goods capable of being pledged. Maneckji Pestonji Bharucha and another v. Wadilal Sarabhai Co. A I R 1926 P C 38 ref. (c) Negotiable Instruments Act (XXVI of 1881) Ss. 53 & 89 Shares of a public limited companyHeld, cannot be equated with bills of exchange. (d) Contract Act (IX of 1872) . S. 78Sale by pledgor of share scrips pledged with Bank Bank delivering share scrips to purchaser acts as agent of pledgor Bank's position as appearing from correspondence and written statement being that of agent, Bank, held, could not urge to have not acted as agent in transaction in question. Re The Deirdre Samuel The, Trustee v. Isidore Kerman (1945) 2 All E L R 71 not relevant. (e) Contract Act (IX of 1872) Ss. 182, 185 & 186AgentConsiderationNo consideration necessary to create agencyAuthority of agentMay be express or impliedBanks having special property/interest in pledged shares, payment against such shares to be received by such Banks not merely as ordinary Bankers but as agents having…