CANARA BANK Vs. VIJAY KUMAR ARORA

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated 31st March, 1998 of the Additional District Judge, Delhi in appeal against the judgment of the Civil Judge dated 11th April, 1997, whereby the learned Appellate Court has allowed the appeal while setting aside the judgment of the Trial Court.

(2.) The brief facts of the case as noted by the Additional District Judge are as follows :

(3.) The Trial Court has held that the bank was merely a collecting agency and therefore, the draft lost in transit was not the responsibility of the bank. The First Appellate court while not agreeing with the reasoning of the Trial court has held that the account opening form which is produced by the bank is a blank form and it does not bear the signatures of the plaintiff and so it does not amount to a contract between the plaintiff and the defendant. Reliance of the the Trial Court on this account opening form was therefore not justified. The bank if wanted to rely upon the contract between it and the appellant, must have proved the actual contract between the plaintiff and the bank, the defendant No.1. In absence of this contract having been proved by the bank, the First Appellate Court has reversed the finding of the Trial Court.