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The respondent's failure to file Form No. 365a constitutes an omission to disclose security, requiring surrender of the security for the general benefit of all creditors under Rule 170(1) of the Companies (Insolvency) Rules, 2005. The respondent did not apply for relief from this consequence, and thus must release the title deed to the liquidator.
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The High Court found the borrower in default and held four guarantors liable, while exonerating the 5th and 6th defendants and ordering release of CT No. 79784.
Defendant owed plaintiff a duty of care to safeguard the pledged certificate of title and breached that duty by negligently misplacing the document, causing material and mental loss to the plaintiff. Specific damages were not proved to the required standard, but general damages are warranted for detinue and negligence.
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