VIJAYA BANK Vs. SUNDER LAL SHAH

JUDGEMENT

(1.) FIRST Appeal Nos. 55, 56 and 57 of 1993 are being disposed of by this common order as the facts are similar in all these three appeals. These appeals have been filed in all the three cases by the Vijaya Bank against the order of Maharashtra State Commission dated 2.11.92. Shri Sunder Lal C. Shah and Shri Dilip S. Shah, the Complainants in the case before the State Commission, had alleged that the Vijaya Bank, Appellant herein allowed a withdrawal from the Current A/c Nos. 217 and 220 in the name of M/s. S.C. Shah & Co. and M/s. Maharashtra Tea Depot, Respondents herein, by Shri Babu Lal Shah, which was without proper authority. It was also alleged that this withdrawal by Shri Babu Lal Shah was allowed in collusion with the officers of the Bank and amounted to negligence in service as the withdrawal was contrary to the instructions and advice given by the Complainants. The Complainants claimed back Rs. 1.55 lakhs the amount so withdrawn, together with interest. They also claimed Rs. 50,000/ - for the loss of business and Rs. 25,000/ - for mental torture. The Maharashtra State Commission came to the conclusion that Shri Sunder Lal Shah alone was entitled to operate Current A/c No. 220 and therefore the amount of Rs. 1.55 lakhs withdrawn by Shri Babu Lal Shah, is contrary to the intructions given to the Bank. They, therefore, awarded the relief in the nature of a direction to the Vijaya Bank, Sangli Branch to pay to the Complainants Rs. 1.55 lakhs together with interest at the rate of 18% per annum from 5.3.1991 till the date of payment and also Rs. 5,000/ - as compensation for the loss and expenses in filing the complaint.

(2.) THE Respondents were not present either in person or through Authorised Representatives.

(3.) IT has been argued before us by the Counsel for the Vijaya Bank that the accounts of Shri Sunder Lal Shah, Babu Lal Shah and Dilip S. Shah were in the nature of family accounts, because all of them are closely related and having a number of firms registered. This withdrawal of Rs. 1.55 lakhs by Shri Babu Lal Shah was allowed fully in accordance with the instructions as contained in the Account Opening Form. According to these instructions all of them were entitled to transact business with the Bank severally or jointly, and that each of the four persons, who signed the partners liability letter dated 26.10.87 shall be individually liable to the Bank to discharge all the obligations. The Hindi version of this liability form is duly filled in and has been signed by all the four persons including Shri Babu Lal Shah and Smt. Sushila S. Shah. Shri Babu Lal Shah vide his letter dated 5.3.91 has also confirmed that he withdrew Rs. 1.55 lakhs from account No. 220 in his capacity as a partner. Similarly Smt. Shshila Shah also informed that she withdrew Rs. 5.35 lakhs from Account No. 216 in her capacity as a partner.