M/S. KESORAM INDUSTRIES LIMITED Vs. ALLAHABAD BANK

JUDGEMENT

(1.) This is a suit for declaration and injunction.

(2.) The plaintiff's case, in brief, is that the plaintiff is a company incorporated under the Companies Act and carries on business, inter alia, in retail sale of fabrics and other items. The defendant is a nationalized bank and carries on banking business.

(3.) Plaintiff issued Refund Warrants to its customers and the customers could encash and obtain refund which the plaintiff agreed to pay to them within six months of the date of issuance thereof and made arrangement with the defendant bank and on 14.1.1984 opened with the Stephen House Branch of the defendant Bank, a cash credit account bearing no. 400016 with a limit of Rs. 9 Crores and also a customer Refund Account No. 404 in the name of the customers of the plaintiff (referred to as the ROB A/c. No. 404) to facilitate smooth encashment of such refund vouchers which would be encashed by all Branches of the defendant bank within the validity period of six months and thereafter, the full particulars of such payment would be obtained by the defendant bank and such particulars would be supplied to the plaintiff for reconciliation and after reconciliation the amount paid by way of such encashment of the refund vouchers would be debited in the said cash credit account of the plaintiff.