Law:

Section:

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) --Ss. 9 & 10 Civil Procedure Code (V of 1908), O. XXXII, Rr. 1 & 3 Guardian and Wards Act (VIII of 1890), S.7 ¬Recovery of Bank loan Suit against minors Appointment of guardian ad litem Requirement Father of the minors was duly appointed guardian by the Guardian Judge who appeared before the Banking Tribunal and submitted application for leave to defend the suits on his behalf and on behalf of the minors Banking Tribunal rejected the application and decreed the suit in favour of the Bank ¬Contention of the minors was that they were given no notice and the decree to their extent was void Validity ¬When the application for leave to defend was filed, the father of the minors was still acting as guardian ad litem of the minors No objection having been raised for non¬ appointment of guardian of the minors, the contention of the minors was repelled by the High Court. (b) Banking Companies (Recovery of Loan, Advances, Credits and Finances) Act (XV of 1997) ---- Ss. 9 & 21 Transfer of Property Act (IV of 1882), S.58 ¬Guardian and Wards Act (VIII of 1890), S.7 Recovery of Bank loan Mortgage of property owned by minorsâ-ž Against such mortgage, the Bank advanced loan to the borrower who was the father of minors and was duly appointed guardian by the Guardian Judge Permission for mortgage of the property owned by the minors to the extent of Rs.16 Lakh, for the purpose of loan, was granted by the Guardian Judge Borrower deposited the title documents of the property with the Bank, executed collateral mortgage deed and received a loan of Rs.90 Lakh Suit was decreed in favour of the Bank and the property owned by the minors was handed over to the Bank in execution of the decree ¬Plea raised by the minors was that at the most the liability of the minors was to the extent of Rs,16 Lakh and not more Validity No permission was ever sought and grained by the Guardian Judge to create collateral mortgage or deposit of title deeds, therefore, father of the minors exceeded his powers as guardian At the time of deposit of title deeds, the bank did not ask the borrower for permission…

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