BANK OF INDIA Vs. MONOJIT SEN

JUDGEMENT

(1.) This is Plaintiff's second appeal against a judgment of reversal.

(2.) This is a suit instituted by the Bank of India, inter alia, for recovery of sum of Rs. 9,017.55 (Rupees nine thousand seventeen and fifty five paisa) only against the Defendant No. 1 and for direction on the Defendant No. 3 to issue debentures in lieu of shares standing in the name of Central Bank of India Limited in the absence of production of specimen signatures of Defendant No. 1 and to hand over the same to the Plaintiff/ bank. The Plaintiff, also prayed for a declaration that the shares pledged with the bank by the Defendant No. 1 be declared as first and paramount charge for due payment of the bank's dues.

(3.) The bank instituted Title Suit No. 39 of 1977 in the court of the learned Subordinate Judge, Fourth court at Alipore contending that the Defendant No. 1, Monojit Sen, had one over draft account with the Bhawanipur Branch of the Bank with a limit of Rs. 8,500,00 (Rupees eight thousand five hundred) only. The said Monojit Sen along with his wife had a joint savings account with the said Bhawanipur Branch of the bank being savings bank account No. 1160. Admittedly, the said Monojit Sen issued a cheque for Rs. 5,600.00 (Rupees five thousand six hundred) only from the said savings bank account and the said cheque was presented for encashment on May 22, 1974. The said savings bank account did not have sufficient fund to cover the amount of the said cheque and, accordingly, the bank obtained telephonic instructions from the Defendant No. 1 and transferred a sum of Rs. 5,600.00 (Rupees five thousand six hundred) only from the said over draft account to the said savings bank account to enable the bank to honour the cheque and to safeguard the interest and reputation of the constituent. The Defendant No. 1 although received the statement of accounts from the bank in respect of the over draft account showing such transfer of sum of Rs. 5,600.00 (Rupees five thousand six hundred) only from the said over draft account to the said savings bank account, he did not raise any objection whatsoever. The Defendant No. 1 is, thus, liable to pay a sum of Rs. 9,017.55 (Rupees nine thousand seventeen and fifty five paise) only including interest, but he refused to honour the demands of the bank.