M..C. CHACKO vs STATE BANK OF TRAVANCORE, TRIVANDRUM

The Supreme Court held that a charge could not be created in favor of a creditor bank based on a deed executed by a father to his son, as the recitals did not indicate an intention to create such a charge. The Court clarified that the letter of guarantee only established a personal obligation, and the creditor bank, not being a party to the deed, could not enforce its covenants. The appeal was dismissed, affirming the High Court's decision that the charge was not enforceable by the bank.