LAWS(KAR)-1988-2-26

KARNATAKA BANK LTD Vs. K SHANKARA BHAT

Decided On February 29, 1988
KARNATAKA BANK LTD. Appellant
V/S
K.SHANKARA BHAT Respondents

JUDGEMENT

(1.) THE view taken by the trial Court in disposing of I.A. VIII is correct. Once the pleadings occasion the raising of an issue that issue must be raised notwithstanding Sec. 36AD of the Banking Regulation (Amendment) Act, 1949, (hereinafter referred to as the Act). Sub-sec. (2) of Sec. 36AD of the Act itself provides for the penal consequences of the breach of the prohibition contained in sub-sec. (1) of Sec. 36AD of the Act. That should be separately pursued by those who claim to have suffered by such act as is prohibited under sub-sec. (1) of Sec. 36AD of the Act. But in a civil suit for damages, the defendant has the right to plea of justification of the act complained of which is prohibited by Sec. 36AD of the Act. Any findings recorded on the issue based on evidence may be argued out by either the Bank or the opposite party in regard to its merits. But Sec. 36AD of the Act itself does not give right to the Bank to have such an issue deleted.

(2.) THE civil revision petition is misconceived and it is rejected. Revision petition rejected.