TRAVANCORE NATIONAL BANK SUBSIDIARY CO LTD IN LIQUIDATION THROUGH ITS OFFICIAL LIQUIDATOR, R NARASIMHACHARI Vs. MSVENKATARAMAN

JUDGEMENT

(1.) THE amount in dispute was payable to the Travancore National Bank Subsidiary Co., Ltd., towards future instalments in respect of chits held by the first respondent, the prize winner, and it was deposited in a Chit Savings Bank account in the name of the first respondent in the Travancore National Bank Ltd., in accordance with Rule 18 (b) of the Chit Fund Rules. Rule 4 of the Rules of the Chit Savings Bank account provides that the amount deposited shall not be available for withdrawal for purposes other than for payment of chit instalments till the termination of the particular chit in respect of which the account is opened and under Rule 5 the chit fund subscriptions due every month are to be appropriated and adjusted from the Chit Savings Bank account as and when they fall due. Rule 6 provides that the Chit Savings Bank account is to be treated as an ordinary Savings Bank account only after the termination of the chit, and there was in effect an assignment to the petitioner of the moneys standing to the credit of the account. THE amount was deposited in the manner sanctioned by the petitioner, the promisee, for the performance of the promise and under Section 50 of the Indian Contract Act the performance is good. In the circumstances the promisee has to take the risk and the decision of the lower Court is correct. THE revision petition therefore fails and is dismissed with costs.