MOTHOORMOHUN ROY Vs. THE BANK OF BENGAL

JUDGEMENT

(1.) The Bank was also at one time under the impression that even during the currency of the bills, when the Bank had no present right to sue Radha Gobind upon them, they could still, under the 17th section of the Act (XI of 1876) refuse to register the transfer. But this is clearly not so. The language and the evident intention of that section points to a present debt only as conferring a right upon the Bank to refuse either to register a transfer, or to pay dividends; and this view is strongly fortified by the English case of In re The Stockton Malleable Iron Co. L.R. 2 Ch. D. 101, in which it was held that the words 'due' and 'indebted' in the Articles of Association of a trading company, which gave to the company a lien upon shares similar to that given by this Act to the defendants, must he taken to refer to debts presently payable.

(2.) With reference, however, to the demand of registration alleged to have been made on film 31st of July, it has been distinctly proved that two bills of Radha Gobind, which matured on the 14th and 22nd of July, were not (for some reason or other) included in the mortgage arrangement which was made between the Bank and Radha Gobind on the 8th, so that the amount of these bills was due to the Bank on the 31st; and the Bank was therefore clearly justified in refusing the transfer on that day.

(3.) After dealing shortly with the case on its merits, the learned Chief Justice continued: