RAGHAVENDRASINGH BHADORIA Vs. STATE BANK OF INDORE

JUDGEMENT

(1.) This is a petition by purchaser of a demand draft claiming a restraint order on the drawer and drawee Branches of State Bank of Indore injuncting them from honouring the demand draft even if presented by the payee.

(2.) Malik Barkat Ali v. Imperial Bank of India It is necessary to state the facts in brief. The petitioner purchased demand drafts bearing No. 509218 and No. 509219 both dt. 22-2-1991 of the value of Rs. 8,00,000/- and Rs. 2,00,000/- respectively from Patrakar Colony Branch of State Bank of Indore. These drafts were drawn on the Marwadi Road, Bhopal Branch of the same bank and were drawn in favour of M/s. Mc Dowell and Co. Ltd. the respondent No. 3. On 22-2-1991 itself, the petitioner wrote to the Patrakar Colony Branch of State Bank of Indore (the issuing Branch) informing of the loss of drafts and requesting to send instructions to drawee branch, not to honour the draft. A report of the loss of drafts, was also lodged with M. G. Road Police Station, Indore. From the photocopy of the report annexed to the petition, it seems to have been lodged on 26-2-1991. On 26-2-1991 itself the petitioner wrote to the Patrakar Colony Branch of State Bank of Indore, repeating the information about loss of the drafts. However, this time curiously, a strange request was made to get the demand draft dishonoured even if preseated by the payee. The Patrakar Colony Branch conveyed the information and request to the Marwadi Road, Bhopal Branch.

(3.) The story of loss of drafts lost all relevance because it transpired that the Respondent No. 3 M/s. Mc Dowell and Co. Ltd. in whose favour the drafts were drawn, itself presented them in Marwadi Road, Bhopal Branch for payment. The Marwadi Road Bhopal Branch refused to stop payment of the drafts. Hence the petitioner filed this petition contending that Respondent Bank was obliged to dishonour the drafts as the Petitioner, the purchaser of the drafts had instructed it to do so before they were honoured and payment was made to the payee.