PUNJAB AND SIND BANK Vs. TEXTILE SYNDICATE

JUDGEMENT

(1.) THIS suit CS(OS) No.1923/2003 was filed by the plaintiff-bank against total of four defendants. Defendant Nos.1 and 2 were the beneficiaries of the amounts received under the unauthorized banker's/Manager's cheque. This Manager's/Banker's cheque was issued by the then Manager Mr. S.K. Tyagi/ defendant No.3 under his signatures. Since the Manager's cheque book was in the joint custody of the defendant No.3 with the defendant No.4 (defendant No.4 being the Accountant), liability of defendant no.4 is also alleged.

(2.) THIS suit was originally filed in this Court, however, the suit was thereafter transferred to the Debt Recovery Tribunal (DRT) after passing of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act). The O.A. before the DRT was decreed against the defendant Nos.1 and 2, however, the DRT returned the OA so far as defendant Nos.3 and 4 are concerned to this Court inasmuch as the amount claimed as against the defendant Nos.3 and 4, being the Manager and the Accountant of the plaintiff- bank respectively, was not a 'debt' as per the definition of this expression under the RDDBFI Act inasmuch as it did not arise out of a business transaction of the bank and recovery against defendants no. 3 & 4 thus could not be the subject matter of recovery under RDDBFI Act. After the file has been received from the DRT, plaintiff-bank has led evidence. Defendant Nos.3 and 4 failed to lead evidence and therefore their right to lead evidence was closed.

(3.) THE defendant Nos.1 and 2 had admitted their liability by means of a letter dated 24.5.1993, and which aspect has been taken note of by the DRT while passing the judgment against the defendant Nos.1 and 2 on 21.11.2001. The contents of the letter dated 24.5.1993 will thus also bind the defendants no. 3 & 4. The statement of account of the bank has also been filed and exhibited as Ex.PW3/4 and which contains the necessary entries. The legal notice dated 30.4.1988 has been proved and exhibited as Ex.PW3/5 and the corresponding postal receipts have been proved and exhibited as Ex.PW3/6 to Ex.PW3/12.