RANJIT RAY Vs. DADAVID

JUDGEMENT

(1.) The facts of the case out of which this appeal arises are fairly simple. The point of law which has to be determined upon a consideration of those facts is however one of some difficulty. A suit was brought by the liquidator of the Co-operative Hindusthan Bank Limited to recover from certain persons, who are the Wardens of the Armenian Church, a sum of money for work and labour done on behalf of the Wardens of the church by a firm named Carr, Morrison & Co., Ltd. That firm has gone into liquidation and the liquidator of it, Mr. G.C. Read, is a party to this suit. The Wardens of the Armenian Church, so far as these proceedings are concerned, have in effect called upon the other two parties to interplead. They have paid into Court a sum of Rs. 2,971-12-9 which was the amount ultimately agreed as being owing in respect of the work done by Carr Morrison & Co. The conflict of claims between the liquidator of the bank and the liquidator of Carr Morrison & Co., arises from the fact that Carr Morrison & Co. borrowed from the bank the sum of Rs. 3,000 and executed in favour of the bank a promissory note, dated 8 July 1930. In addition, the company assigned two bills, or rather invoices, which were made out by Carr Morrison & Co. as builders and contractors, addressed to the Wardens of the Armenian Church of Calcutta. One of those bills was for a sum of Rs. 5,737-10-0 and the other bill was for Rs. 6,985-3-0. The bills were numbered respectively 166 and 167 and they were both dated 5 July 1930. On the same date, a letter was addressed by Carr Morrison & Co., to the Wardens of the Armenian Church in these terms: Re: No. 2, Middleton Row. We beg to hand you herewith our final bills in respect of the above work (repairs, sanitary and plumbing), for favour of payment, at your early convenience. The enclosed bills aggregate Rs. 12,720-13-0, against which you have, from time to time, advanced the sum of Rs 7,000 only, leaving a balance of Rs. 5,720-13-0 still due. These final bills cancel the running bills previously issued, viz., Nos. 122, 123, 125 and 126. These bills are assigned and endorsed for valuable consideration to the Co- operative Hindusthan Bank, Ltd., Calcutta, and we will thank you to make payment to them direct to our a/c, at 12-2, Clive Row, Calcutta....

(2.) Upon the back of the bills there was the following endorsement: Please pay to Co operative Hindusthan Bank, Ltd., Carr Morrison & Co., Ltd., (Sd.) P.M. Morrison, Managing Director. Carr Morrison, & Co., Ltd., (Sd.) C. Carmichael, Managing Director.

(3.) The position therefore was that by the endorsement on the back of the bills, coupled with the notification contained in the letter of the same date, Carr Morrison & Co., assigned to the bank the benefit of the debt then owing to them by the Wardens of the Armenian Church. The bills and the letter of 5 July were sent through the bank and, on 8 July, were forwarded by the bank to the Wardens of the Armenian Church, under cover of a letter, which is in these terms: Please receive the following bills which have been endorsed to this bank for valuable consideration and the cheque for which when passed should be drawn in favour of this bank and sent to us for credit of the account of Carr Morrison & Co., Ltd., with this bank. At the foot of the letter, there is a tabular statement in the following form: (1) One letter dated 5 July 1930 of Carr Morrison & Co., Ltd. (2) Bills Nos. 163 and 167 dated 5 July 1930 for Rs. 5,737-10-0 and Rs. 6,935- 3-0.