PUNJAB & SIND BANK Vs. CHAINRUP SAMPATRAM

JUDGEMENT

(1.) The present appeal has been filed by the defendant-Bank against a judgment and decree passed in favour of the plaintiff/respondent declaring that the discounting and/or discharge of the Fixed Deposit Receipt Nos.084574 for Rs.25,00,000.00 and 084575 for Rs.5,00,000.00 is false, fraudulent, inoperative and not binding upon the plaintiff as well as a decree of Rs.39,67,922.00 along with interest pendente lite on the principal sum at the rate of 9% per annum from the date of suit to the date of decree and further interest from the date of decree till realisation at the rate of 6% per annum, with costs.

(2.) The brief facts of the case are that the plaintiff/respondent, which is a partnership firm, opened a Fixed Deposit of Rs.25,00,000.00 on May 17, 1997 and another Fixed Deposit of Rs.5,00,000.00 on May 19, 1997 with the defendant-Bank for a period of six months each, maturing respectively on November 17, 1997 and November 19, 1997.

(3.) According to the plaintiff/respondent, when the respondent wrote to the Branch Manager of the concerned Bank on November 19, 1997 for release of the maturity amounts in respect of the said two Fixed Deposits (FDs), a reply was given in writing by the said Branch Manager on behalf of the Bank on the same date, alleging that the FDs had been discharged and prematurely discounted on May 19, 1997 and May 24, 1997 respectively and the proceeds credited to Current Account No.756 purportedly opened in the name of the plaintiff/respondent. Apparently, the said amount had subsequently been siphoned off from the said account as well.