BENGAL BANK LTD Vs. SATYENDRA NATH DAS

JUDGEMENT

(1.) This is an application under Section 25, Provincial Small Cause Courts Act by the Bengal Bank Limited, who was deft. 2 in a suit brought by the plffs Satyendra Nath Das & Prithwiraj Das.

(2.) The facts leading to this application briefly are as follows: Satyendra Nath Das & Prithwiraj Das sold some timber to deft. 1 Basanta Kumar Nag & demanded the price thereof, Basanta Kumar Nag thereupon drew a cheque on the Economic Bank Limited, Sonamukhi Branch, for the amount claimed & made it over to the plffs. in payment of their debt. The plffs. sent this cheque to the petitioner, the deft. 2 (the Bengal Bank Limited) for collection & credit to their account. The Bengal Bank sent the cheque to the Bankura Branch of the Economic Bank Limited for realisation. The Bankura Branch realised the amount from the Sonamukhi Branch but did not make over the sum realised to the Bengal Bank on account of some "internal trouble" & asked for time. Thereafter, the Economic Bank Limited went into liquidation & the Bengal Bank Limited could not realise the money. The plffs. were informed of this and the plffs. brought this suit out of which this application arises making Basanta Kumar Nag, the drawer of the cheque deft. 1, the Bengal Bank Limited, deft. 2, the Bankura Branch of the Economic Bank Limited, deft. 3, & the Economic Bank Limited, Sonamukhi Branch, deft. 4. The plffs' case was that they were entitled to get this money from one or other of the defts. The learned Judge of the Court of small causes has held that the only party liable to pay this money to the plffs. is the Bengal Bank Limited. As far as I can ascertain from the judgment the learned Judge thinks that the Bengal Bank Limited, employed the Bankura Branch of the Economic Bank Limited as its agents to collect the money & as its agents had failed to collect the money the plffs. would be entitled to recover it from the Bengal Bank. He has accordingly decreed the suit against deft. 2 & dismissed it against the rest. Against this decision the Bengal Bank Limited has obtained this Rule.

(3.) The learned Advocate for the Bengal Bank contends that in no way can the petitioner be held liable in this case. The petitioner was merely asked to collect the amount from the drawee bank. The drawee bank having gone into liquidation the money could not be collected. There was no liability on the part of the petitioner to pay this sum to anybody until it got it from the payee Bank. On behalf of the plffs. the argument is that the plffs. do not mind from whom they get the money so long as they realise their dues. It was contended by the learned Advocate on behalf of the plffs., however, that the Bengal Bank Limited was liable on the ground that the money was not realised owing to default of the agents of the Bengal Bank Limited, their agents being the Bankura Branch of the Economic Bank. Further, the learned Advocate contended that even if the Bengal Bank is not liable he is entitled to get a decree from the deft. Basanta Kumar Nag. He concedes that as there is no privity of contract between his clients & the Economic Bank Limited he cannot enforce any claim against them.