UNITED INDUSTRIAL BANK LTD. Vs. G.C. DEY

JUDGEMENT

(1.) THIS guit has been filed by the plaintiff bank against the defendant for recovery of a sum of Rs. 10,317 -04 p. as money due by the defendant to the plaintiff on an overdraft account, interest and costs. The plaintiff's case is that the defendant maintained a current account with Metropolitan Bank Ltd., with overdraft facilities. On the 6th February, 1964 by virtue of the provisions of the Banking Companies Act, all the assets and liabilities of the Metropolitan Bank Ltd were transferred and vested in the plaintiff bank Thereafter the defendant became a constituent of the plaintiff bank and continued to operate the said current account which had been transferred from the Metropolitan Bank Ltd. to the plaintiff bank at its branch office at 7, Chowringhee Road The plaintiff permitted the defendant to withdraw on the said account The plaintiff also paid moneys to the defendant or at the defendant's reauest or incurred expenses on the defendant's account, By documents dated 29th May, 1959. 15th December. 1959 and 9th May, 1961. all of which have been made exhibits at the trial, the defendant agreed to pay interest initially at the rate of 7 1/2 per cent per annum and subsequently at the rate of 8 per cent per annum with effect from 9th May, 1961 with monthly rests.

(2.) THE plaintiffs case is that the said account maintained by the defendant at the plaintiff's branch office was a mutual, open and current account.

(3.) BY two letters dated the 13th September. 1963 and 29th April. 1964, copies of which have been made Exhibits 'J' and 'K' the plaintiff demanded payment of the overdraft balance then out -Standing but the defendant failed and neglected to pay the same.