Tuesday 29 December 2015

HC ordered sale of pledged shares to recover shortfall in repayment of overdue sum

Contract Act: Where loan of a company had been secured by respondent company by depositing shares belonging to their company by executing Non-Disposal Agreement/Loan Purchase Agreement with appellant bank and relevant clauses of agreement clearly mentioned that agreement would subsist till all dues of appellant bank were paid in full, in event of non-payment of shortfall in case of default, said shares were to be sold to recover shortfall

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