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2000 (4) TMI 811 - SC - Indian LawsWhether there was no negligence on the part of the respondent-bank in dealing with its security of pledged shares of the appellant or its release in part to him and that the bank could also not be faulted on its practice? Held that:- It is difficult to accept the contention of the bank that the correspondence that was exchanged between the appellant, the Nagpur Branch of the bank and its head office did not constitute an agreement between the parties under which the bank is agreed to sell the 500 shares of Castrol Ltd. pledged with it by the appellant. This agreement can be clearly spelt out from the correspondence exchanged between the parties. The indicative price at which the appellant requested the bank to sell the shares of Castrol Ltd. was ₹ 2, 400 to ₹ 2, 500 per share. As to what is the price of share on any day is known to the bank and for that matter to any person interested in knowing value of the shares. On 29th July, 1992 the price of the share of Castrol Ltd. had fallen to ₹ 700 per share though it was more than the value of the share at the time these shares were pledged with the bank. The appellant has arrived at the figure of ₹ 8, 50, 000 as the loss occasioned to him. On 30th June, 1992 his overdraft account showed debit balance of ₹ 3, 40, 962.53 with the bank. The appellant, therefore, said that he suffered a loss of ₹ 5, 09, 037.45 after deducting the debit balance, which he, thus, claimed with interest and other charges like damage for loss of long standing business due to non-renewal of letter of credit; for non-releasing of securities; undue and unjust harassment, thus, making a total of ₹ 29, 56, 264.76. On the face of it apart from the claim of damages for loss in selling the shares other claims are too much overblown to be considered at all. The appellant would, thus, be entitled to the award of ₹ 5, 09, 037.47 with interest at the rate of 11 per cent per annum from 1st August, 1992. The bank is granted four weeks time to make the payment. In case of default, the appellant shall be entitled to further interest at the rate of 18 per cent per annum on the amount of ₹ 5, 09, 037.47 from the date of the award till payment.
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