HYDERABAD STATE BANK Vs. RANGANATH RATHI

JUDGEMENT

(1.) THE facts out of which this appeal arises are few and simple. The defendant Ranganath Rathi opened a current account with the plaintiff, the Hyderabad State Bank on 22 -1 -1946. It is common ground that the defendant did not enjoy under the rules any overdraft concession. He drew a cheque Ex. -20 dated 4 -2 -1947 bearing No. 108779 for a sum of Rs. 5,500/ - in favour of one Mansani Rajeeru. He had at the time only a sum of Rs. 307 -11 -8 to his credit in the Bank account.

(2.) SEVEN witnesses were examined on behalf of the plaintiff and two on behalf of the defendant. The learned First Judge, City civil Court, on the basis of the evidence found (i) that the dishonoured cheque was not sent to the defendant at all; (ii) that the letter dated 1 -1947 was given by the defendant under a misapprehension that the amount of the cheque was paid on 4 -2 -1947 with the avowed object of pre serving his prestige and credit and not under any obligation of the plaintiff to pay off amount to the Raghunathmal Bank Ltd., as result of its laches; (iii) that the letter is without consideration within the meaning of S. 2 (d) of the Contract Act and is not an enforceable agreement; and (iv) that as the payment made by the plaintiffs was not voluntary nor with view to benefit the defendant, the plaintiffs not entitled to recover the amount from the defendant in law. With these findings he dismissed the suit with costs.

(3.) THE document obtained under such circumstances is hit by S. 19 of the Contract Act. That apart, as there is no consideration for the promise embodied in the document within the meaning of S. 2 (d) of the Contract Act it is an agreement unenforceable in law. S. 2 (d) reads thus: