D S PUREWAL Vs. PUNJAB MERCANTILE BANK LTD

JUDGEMENT

(1.) IN this appeal under Clause 10 of the Letters Patent, judgment dated 6th of October, 1961, of Tek Chand J. in Civil Original No. 55 of 1956 is impugned.

(2.) TO appreciate the controversy it is necessary to set out a few facts.

(3.) THE Punjab Mercantile Bank Limited (in liquidation) lodged the petition giving rise to the instant appeal, under Section 45d of the Banking Companies Act claiming a sum of Rs. 43,191-11-0. D. S. Purewal, the present appellant, and the Paramount Marketing Company through its two partners, Gian Chand Joshi and R. S. Phoolka, were impleaded as respondents. The averments as respects the appellant's liability were that the Punjab Mercantile Bank Limited (in liquidation), hereafter to be referred as bank, had advanced monies from time to time to the Paramount Marketing Company (hereafter to be referred as the corporation) and was in that behalf carrying for the corporation a cash credit account. In realization of the advances made, iron scrap, property of the corporation, was despatched by the bank per railway receipts endorsed to the appellant, D. S. Purewal, at Calcutta for him to sell the same in the market. The amounts realised were to be remitted to the bank to be deposited into the said credit account to meet the corporation's obligations to the bank. Purewal continued selling the scrap on delivery per railway receipts and remitted some amounts as contemplated, but failed to make good the outstandings totalling Rs. 25,000. The claim against the corporation was to the tune of Rs. 43,191-11-0, the amount due on account. The learned single judge on the pleas raised settled the three following issues :