STATE OF RAJASTHAN Vs. BANK OF RAJASTHAN LTD

JUDGEMENT

(1.) THIS is a State appeal against the judgment and decree of the Additional District Judge, Jhalawar, dated March 20, 1973. whereby a suit filed by the State for the realisation of Rs. 5,200/ - from the Bank of Rajasthan Ltd. Jhalawar. against firm Nand Ram Shankar Lal of Jhalawar, was dismissed by the trial court.

(2.) FACTS giving rise to this litigation are in nutshell, as follows: Defendant No. 2 firm Nand Ram Shanker Lal was appointed in the year 1950 -51 as a importer for cloth by the Civil Supplies Department of the State of Rajasthan for importing cloth to be sold in the District of Jhalawar. It is alleged that the firm was required to furnish a security for Rs. 5 000/ -. According to the plaintiff's case the defendant firm M/S Nand Ram Shinker Lal deposited an amount of Rs. 5,000/ - in the Jhalawar State Bank and the said Bank stood as a surety to guarantee to payment to tae State to the extent of Rs. 5,000/ - vide letter of the Bank dated 26 5 50. The Jhalawar State Bank then became defunct and its assets including the deposit of Rs. 5,000/ - from the firm were taken over by the defendant No. 1 the Bank of Rajasthan, Jhalawar Branch. From the averments made in the pleadings of the parties it appear that till 1958 this amount remained deposited with the defendant Bank. The defendant firm demanded a refund of this amount from the Bank and it appears that the Bank refunded Rs. 5,200/ - (Rs. 200/ - as interest) on December 22, 1958.

(3.) BOTH the defendants denied their liabilities to pay Rs. 5,200/ - to the State Government. Defendant No. 2, however, pleaded that no amount is due to the State Government and it was not entitled to demand the refund of the security money to it.