In MN Ojha & Ors v Alok Kumar Srivastav & Anr the Supreme Court recently considered the powers of a high court under Section 482 of the Code of Criminal Procedure, 1973 (CrPC).
In December 1998 Punjab National Bank (PNB) in Patna approved a loan of Rs500,000 (US$11,000) to a business owned by Jatinder Mohan. The borrower furnished five guarantors, including Alok Kumar Srivastav.
Srivastav deposited fixed deposit receipts (FDRs) worth Rs50,000, authorizing PNB to appropriate the proceeds of the FDRs with interest if the borrower failed to make timely payments. The guarantors also executed an agreement of guarantee in favour of PNB. The guarantors agreed that PNB could enforce the guarantee without enforcing, selling or realizing any of the securities under lien, hypothecation, pledge or mortgage.
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