NARENDRA SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) IN this writ petition, petitioner has prayed to direct the Respondent -Bank of Baroda to release payment of Rs. 41,876.50 with interest in his favour from his Savings Bank Account No. 1854 maintained at Banjaria Branch of the said Bank, which has been withheld on the plea that the amount has been earmarked and has been kept under lien against the loan taken by him from Muzaffarpur Branch of the said Bank :

(2.) THE case of the petitioner, in brief, is that the petitioner applied for loan of Rs. 2,90,000/ - for purchase of Ashoka Leyland Motor Vehicle from Muzaffarpur Branch of Bank of Baroda on usual terms and conditions of the Bank. He deposited Rs. 75,000/ - in fixed deposit as security for loan and further paid a sum of Rs. 3,36,137.23 in several instalments. However, the Bank claimed that Rs. 2,76,614.48 paise is still due and filed Money Suit No. 19 of 1991 for recovery of the said amount along with interest, which was dismissed vide judgment dated 5.9.1995 passed by the learned Subordinate Judge Vth, Muzaffarpur (Annexure -2). Thereafter, the Bank filed First Appeal bearing First Appeal No. 783 of 1995 in this Court, which is still pending. Petitioner is maintaining a Savings Bank Account bearing No. 1854 with Banjaria, Motihari Branch of Bank of Baroda since 1992 and up -to -date balance in the aforementioned account is Rs. 41,876.50 paise. The petitioner was in need of money and when he made requisition for withdrawal of the said amount, the Bank refused to release the payment on the plea that the said account of the petitioner has been earmarked and has been kept under lien against the loan taken by him from Muzaffarpur Branch of the said Bank.

(3.) A counter affidavit has been filed on behalf of Respondents 2 to 4, in which it is stated that Bank of Baroda is one of the premium nationalised Bank and deals with public money and the loans are advanced for economic upliftment and social welfare, and that if the loans taken like that of the petitioner are not paid, there wiil be serious financial loss to the public institution like Bank of Baroda, therefore, the balance amount in S.B. Account of the petitioner at Banjaria Branch was earmarked towards payment of loan due against him. According to the case of the Respondent -Bank this step was taken in the interest of the Bank, as the Bank has right of general lien, as provided under Section 171 of the Indian Contract Act, and that where a customer, having two accounts with a Bank, owes to the Bank on one of them, the Bank can claim a lien on the other account and liquidate the debt due to it by transferring money therefrom.