STATE BANK OF INDIA Vs. JAGDISH TALKIES

JUDGEMENT

(1.) THIS judgment decides F. A. No. 259/90 and the cross-objections submitted therein as well as C. R. No. 46/93.

(2.) SHORT facts relevant for the purposes of the matter under controversy are that Civil Suit No. 1-A/75 was instituted in the Court of Civil Judge, Class-I Damoh, by one Shiv Kumar against M/s Jagdish Talkies. Kasturchand Singhai was appointed as receiver in the said Civil Suit by the aforesaid Court. The building, furniture and machinery of Jagdish Talkies were used to be let out to third persons and the receiver was invested with a power to realise and recover the rent payable by such third persons. Kasturchand Singhai in the capacity of receiver decided to keep the money so received by him in the State Bank of India, Damoh Branch. Accordingly, he opened a Saving Bank Account in his own name and started depositing the money therein. He was assured by the Bank that he will be paid the interest as per the Rules of Banking. This account bearing S. B. A/c No. 20/4918 was opened by the plalntiff on 29-4-1982 with the defendant Bank in the City Branch at Damoh. The bank used to pay the interest by crediting it in the same Saving Bank Account. On 28-5-1986, the defendant informed the plalntiff that it would not pay interest to the plalntiff. The defendant despite opposition by the plalntiff debited the amount of Rs. 23785. 45 ps. from the said account.

(3.) KASTURCHAND Singhai, the original plalntiff in the capacity of receiver instituted Civil Suit No. 7-B/88 for the recovery of Rs. 23,785. 45 ps. with interestpendente lite on the ground that the defendant has no right or power to debit his account and is liable to pay the same with interest from the date of institution of the suit.