PUBLIC BANK LTD Vs. VILASINI AMMA

JUDGEMENT

(1.) These two appeals are by the Public Bank, Ltd., Pudukkad, A. S. No. 457 of 1957 as the defendant in O. S. No. 177 of 1955; and A. S. No. 459 of 1957 as the plaintiff in O. S. 172 of 1955, on the file of the Subordinate Judge, Irinjalakuda.

(2.) The facts are thus: O. S. No. 172 of 1955 concerns the amounts covered by two postdated cheques, Exts. B and C dated 7-1-1122 drawn by the 1st defendant on the Catholic Union Bank Ltd., Irinjalakuda, and the Cochin Nair Bank Ltd., Irinjalakuda, respectively, and discounted in the plaintiff Bank on 29-12-1121 when the 3rd defendant was officiating as manager thereof. No cash was really advanced that day on Exts. B and C. The cheques were in fact deposited in the plaintiff-Bank in apparent discharge of prior like cheques on which money was advanced by the 2nd defendant who was the permanent manager of the Bank. Exts. B and C were dishonoured by the drawee banks on representation on due date for payment. The plaintiff claims the amounts of the cheques from the defendants. The court below has decreed the suit against the 1st defendant and that has become final now. A. S. No. 459 is against the dismissal of the suit against the 2nd defendant. The contention of the 2nd defendant is that the discounting was made in the regular course of business of the Bank, and involved no particular negligence on the part of the manager, and therefore he could not be made liable for the suit claim.

(3.) The course of dealings that led to the presentation of the cheques, Exts. B and C, are detailed by the Subordinate Judge in Appendix A to his judgment, the correctness of which is not challenged before me by counsel. The 1st defendant drew cheque No. 535 dated 19-4-1121 for a sum of Rs. 2,500/-. It was discounted by the 2nd defendant at the plaintiff - Bank. The 1st defendant did not pay the amount covered thereby, but gave another postdated cheque in discharge of the same quite a good number of times in succession. Thus, the cheque No. 535 dated 19-4-1121 was paid off by cheque No. 868 dated 25-6-1121 for Rs. 2,500/-, cheque No. 998 dated 12-7-1121 for Rs. 2,500/- cheque No. 1113 dated 9-8-1121 also for Rs. 2,500/-, and then by cheque No. 1216 dated 11-9-1121 for Rs. 3000/-.