BANK OF BARODA Vs. P MOHAN

JUDGEMENT

(1.) This Second Appeal has been filed to set aside the judgment and decree dated 31.07.2014 made in A.S.No.15 of 2008 on the file of the Principal District Judge, Namakkal, confirming the judgment and decree dated 26.11.2007 made in O.S.No.545 of 2001 on the file of the Subordinate Court, Namakkal.

(2.) The appellant is the defendant and respondent is the plaintiff in O.S.No.545 of 2001 on the file of the Subordinate Court, Namakkal. The respondent filed the said suit for a declaration that set off made by the appellant in respect of FDR No.0541445 dated 18.06.1997 for Rs.1,30,000/- is null and void and for payment of Rs.1,90,909/- together with interest at 12% per annum. According to the respondent, he is the proprietor of SBM Tyres and SBM Transports. He is having accounts with appellant Bank at Namakkal and Salem branches in his name as well as in the names of SBM Tyres and SBM Transports. He deposited a sum of Rs.1,30,000/- on 18.06.1997 in FDR No.0541445. In addition to that, he has also deposited various amounts in Fixed Deposits and term deposits as mentioned in the plaint. He has borrowed a sum of Rs.1,00,000/- in the appellant bank as overdraft loan for the business of SBM Transports. He gave FDR receipt Nos.0541445, 507731, 531805 and 507730 as security. The respondent repaid Rs.1,00,000/- borrowed on behalf of the SBM Transports. The appellant did not pay the amounts on maturity of the FDR and term deposits. The appellant issued notice dated 29.01.2000, stating that they are going to set off the amounts in FDRs for the amounts due in Salem branch by SBM Tyres. SBM Tyres borrowed a sum of Rs.1,60,000/- on 03.01994 in the account No.1385. In the circumstances, the respondent filed the said suit for declaration and mandatory injunction. He also filed two other suits in O.S.Nos.161 and 162 of 2000 for recovery of money covered under other FDRs and term deposit receipts.

(3.) The appellant filed written statement and contended that Rs.1,60,000/- was mistakenly credited twice in the account No.1385 of SBM Tyres, maintained at Salem branch. The respondent withdrew the said amounts. The appellant have right to collect the wrong credit as per Section 72 of the Indian Contract Act. The appellant also has right to set off the amount due to them as per the Bankers General Lien. The set off of Rs.1,30,000/- on 29.02.2000 is valid and prayed for dismissal of the suit.