FEDERAL BANK Vs. JOSEPH

JUDGEMENT

(1.) This is an appeal by the plaintiff. Plaintiff is a Bank. The suit was one for recovery of an amount of Rs.30,000/- and interest on that amount from the first defendant, who was a customer of the plaintiff. The first defendant had N.R.E. Account No.5/80. On 5-4-1982 he produced before the plaintiffs branch at Kidangara, an instrument, Ext.A1 dated 29-3-1982. It was in the form of an order for payment of Rs.30,000/-. Ext.A1 has been issued by the International Finance & Exchange Corporation, Doha, Qatar. Ext.A1 contains the following:

(2.) The first defendant issued a Savings Bank withdrawal form for Rs. 37,000/-. This Savings Bank withdrawal form is Ext. A2. It is dated 10-4-1982. Obviously since there was credit in the account of the first defendant, on that date the amount was paid. When the Bank came to know that Ext. A1 was dishonoured, it demanded the amount from the first defendant. Ext. A1 was dishonoured with the noting 'refer to drawer'. It means that there is no money available to honour Ext. A1. Though the plaintiff demanded the amount of Rs.30,000/- from the first defendant, he declined to pay the amount and that necessitated the institution of the suit.

(3.) The first defendant contended that he is not liable to pay the amount to the Bank. According to him, he has deposited Rs. 30,000/- with the International Finance & Exchange Corporation and got Ext. A1 and so when he has paid consideration for Ext. A1, he has no liability to pay the amount to the plaintiff-Bank. According to him, plaintiff-Bank can seek appropriate remedy against the Syndicate Bank or the International Finance & Exchange Corporation,