CANARA BANK Vs. J.R. EXPORTS

JUDGEMENT

(1.) This matter is on the Regular Board of this Court since 16.1.2012. Today, it is effective item No. 14 on the Regular Board. No one appears for the respondents. I have heard counsel for the appellant and after perusing the record am proceeding to dispose of the matter.

(2.) The challenge by means of this Regular First Appeal (RFA) filed under Section 96 of Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the trial Court dated 25.1.2003 decreeing the suit of respondent No. 1/plaintiff against the appellant/defendant No. 4 as also against defendant No. 1.

(3.) The facts of the case are that respondent No. 1/plaintiff filed a suit making averments that under the agreement dated 10.12.1982 entered into between it and defendant No. 1, a sum of Rs. 3,00,000/- was deposited in one particular bank account of defendant no. 1 with the appellant-bank. It is argued that this amount which was deposited in one particular bank account of defendant No. 1/respondent No. 2 was withdrawn therefrom and transferred to a loan account so as to wipe off the liability of defendant No. 1 in the said loan account. It was further pleaded in the plaint that the agreement dated 10.12.1982 was breached by defendant No. 1/respondent No. 2 and therefore respondent No. 1/plaintiff became entitled to refund of Rs. 3,00,000/-. It was further pleaded that this amount of Rs. 3,00,000/- was sought to be paid by defendant No. 1/respondent No. 2 to respondent No. 1/plaintiff by means of a pay order of Rs. 3,00,000/- bearing No. 261/83 dated 4.5.1983 of the appellant-bank. It was pleaded that, however, when this pay order was presented for payment, the same was returned with the remarks "Genuineness disputed hence payment refused". The subject suit, therefore, came to be filed for recovery of the amount of the pay order.