Thanks to the pair of you. I meant to reply after the first reply where I did 
testing using xterm and found that "yes, bash is different". It does in fact 
use a .bashrc file (one file amongst about 7-8 I had tried), and anyway, within 
.bashrc it was defined without any inheritance. ie, it did not include the 
previous settings of path, it was defined outright. Once I fixed it, it brought 
in the inheritance of all the previously set paths.

I havent tried the bash profile one since the bashrc works fine.
 
 
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