SUDERSHAN GOEL Vs. NEW BANK OF INDIA

JUDGEMENT

(1.) In a suit filed by the New Bank of India seeking to recover the amount to it on an overdraft account arrayed as defendants besides the debtors was the petitioner, who was the Manager of the bank at the relevant time. The question arises, is this a case of misjoinder of parties or causes of action?

(2.) The Case against the petitioner is that the overdraft facilities had been allowed by him without the consent of the higher authorities and further that he had been allowing withdrawal of huge amounts in the current overdraft account of the debtor without taking proper precautions and had thereby deliberately acted against the interests of the bank and was thus guilty of violating the instructions issued by the bank and as a consequence caused loss to the bank. It was, therefore, pleaded that he was jointly and severally liable with the other defendants to pay the amount due to the bank.

(3.) The point canvassed on behalf of the petitioner was that the cause of action against him was separate and distinct from that against the debtors from whom the amount was due in respect of the overdraft account and consequently in a suit to recover the amount due from the debtors, the petitioner could not be joined as a defendant. The argument being that whereas against the debtors the cause of action was the recovery of the money paid and received against the petitioner it rested upon allegations of negligence or acting as in excess of his authority.