Director of borrower Co. was liable only to extent of value of share pledged by him as collateral security against loan

FEMA, BANKING amp; INSURANCE : Where director of borrower company pledged certain shares held by him in company as a collateral security for repayment of loan, in case of default in repayment, said director could not be held liable for entire loan amount, he was liable to extent of value of share pledged by him under share pledge agreement

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