SARLA JAIN Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) FACTS may be noted in brief. Asian global Ltd. (here-in-after referred to as AGL)had an account with the Central Bank of india. AGL was advanced certain credits by the bank. There were defaults. Payments remained outstanding by AGL to its banker.

(2.) IN the month of March 1996, 4 cheques, each in sum of Rs. 5 lacs were issued by Asian Consolidated Industries Ltd. (here-in-after referred to as ACI) in favour of AGL. Vide letter dated 7. 3. 1996 AGL forwarded the 4 cheques to its banker informing as under :-'find enclosed the following cheques to clear the outstanding amount in our account. . . . . . . . . '.

(3.) THE cheques when presented for encashment were returned dishonoured by the banker to whom the cheques were drawnt i. e. the banker of ACI.