Why is the maximum torque of a squirrel cage induction motor called pull-out torque?

The maximum torque of a squirrel cage induction motor is also called pull-out torque because of the way the motor reacts to an overload. After the maximum torque point (which is three to four times the full-load torque), the decrease in rotor* p.f. is greater than the increase in rotor current resulting in a decreasing torque and the motor quickly comes to stop.

It is generally experienced that a lathe will stall on a heavy cut. The machine will slow down as its cutting load is increased until suddenly it will stall and hum or growl loudly. This condition will persist until the load is removed or a fuse blows.