PANALAL Vs. BANK OF INDIA

JUDGEMENT

(1.) THE complaint is that Opposite Party No. 4 (Chief Manager, Bank of India, Pune, Main Branch) has wrongfully, negligently and unauthorisedly made payments totalling Rs. 25,59,000/ - on the 3rd, 4th & 5th of May, 1990 on the authority of one of the partners resulting in debit balance in the two cash credit accounts of the partnership firm with the Bank. 1. The complainant Panalal Khemchand Shah is one of the two partners in the firm M/s. Khemchand Dayaljee & Sons. The cash credit accounts of the firm with the Bank were being operated by either of the parmers individually on behalf of the partnership firm. The Complainant informed the bank by a telegram and telex on 3rd of May, 1990 that there were differences among the two partners and that bank should not make payment of the Cheques of the Firm without joint signatures of the partners thereon. The complainant followed it with a confirmatory letter on the 4th of May, 1990. The telegram and the telex of 3rd of May, 1990 were delivered to the Opposite Party No. 4 on the 4th of May, 1990 and the confirmatory letter of 4th of May, 1990 was delivered to the Opposite Party on 5th of May, 1990.

(2.) THE complainant has averred that under the Partnership Act, a partner has implied authority to stop payment by the Bank of cheques issued by one of the partners and that a partner is entitled to evoke the instructions for operating the Bank accounts and that only cheques signed by all the partners alone have to be honoured.

(3.) IN these three days the Opposite Party No. 4. made payments of Rs. 25.59 lakhs on behalf of the partnership firm, the details of which are as under: - Date Payment made by the Bank 3 -5 -1990 Rs. 3,58,000/ - 4 -5 -1990 Rs. 10,61,000/ -