BHARAT NIDHI LTD. versus TAKHATMAL & ORS.

BHARAT NIDHI LTD. versus TAKHATMAL & ORS.

The power of attorney coupled with the endorsement on the bill evidenced a clear engagement by the debtor to pay the appellant out of the monies receivable under the bill, amounting to an equitable assignment of the fund by way of security; thus, appellant was the equitable assignee and entitled to the funds, making the respondent's attachment invalid.

Parties
Appellant: Bharat Nidhi Ltd.; Respondents: Takhatmal & Ors.; Respondent: Respondent No. 2
Jurisdiction
India
Judgment Date
07 August 1968
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree of Madhya Pradesh High Court in First Appeal No. 89 of 1959
Outcome
Appeal allowed; decree of High Court set aside; decree of 1st Additional District Judge, Jabalpur restored.
Legal Topics
Power of Attorney, Equitable Assignment, Future Debt, Security for Loan, Attachment in Execution
Debtor and Creditor Power of Attorney Equitable Assignment Future Debt Security for Loan Attachment in Execution

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Parties

Bharat Nidhi Ltd.

Appellant

Takhatmal & Ors.

Respondents

Respondent No. 2

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree of Madhya Pradesh High Court in First Appeal No. 89 of 1959

Legal Issues

  1. 1 Whether a power of attorney coupled with endorsement on a bill amounts to an equitable assignment of monies due under the bill in favour of the appellant.

Ratio Decidendi

The power of attorney coupled with the endorsement on the bill evidenced a clear engagement by the debtor to pay the appellant out of the monies receivable under the bill, amounting to an equitable assignment of the fund by way of security; thus, appellant was the equitable assignee and entitled to the funds, making the respondent's attachment invalid.

Court Disposition

Appeal allowed; decree of High Court set aside; decree of 1st Additional District Judge, Jabalpur restored.

Orders

  • Legal representatives of Takhatmal to pay, out of his assets in their hands, the costs of this appeal as also the costs in the courts below.