UNITED COMMERCIAL BANK Vs. BANKING OMBUDSMAN

JUDGEMENT

(1.) WITH consent of parties, the two writ applications have been heard together in details for final disposal at the stage of admission itself.

(2.) THE first writ application that is CWJC No. 15675 of 2004 has been filed by United Commercial Bank ("UCO Bank" for short) challenging the validity of the order dated 31.03.2003 passed by the Banking Ombudsman under the Banking Ombudsman Scheme 1995 (hereinafter referred to as "the Scheme") in relation to a dispute as between UCO Bank and the Bihar State Food and Civil Supplies Corporation (hereinafter referred to as "the Corporation"). THE second writ application that is CWJC No. 11680 of 2004 has been filed by the Corporation for implementation of the award/order dated 31.03.2003 passed by the Banking Ombudsman which is impugned in the first writ.

(3.) IN the said suit before the Bombay High Court ultimately a decree was passed in favour of Godrej Soap Limited as against UCO Bank and the Corporation for an amount of rupees eighty six lacs + interest from 1981 when money was refunded Page 2421 to UCO Bank. The appeal of UCO Bank and apparently the Corporation is pending. It would, thus, be seen that there is a decree of competent Court as against the UCO Bank in respect of liability of the Corporation towards Godrej Soap Limited, it is for meeting this eventual liability that UCC Bank exercised banker's lien as contemplated under Section 171 of the Contract Act over money lying to the credit of the Corporation in the savings account maintained in UCO Bank at Patna and also over certain fixed deposits of the Corporation with the UCO Bank.