71,435.40 with accrued interest, Penal interest, companymission, fine and companyrt expenses.
The suits were instituted in the Court of the Civil Judge, Senior Division at Margao.
2475 to 2477 and 2579 of 1969 From the judgment and order dated the 15th April, 1969 of the Judicial Commissioners Court at Goa, Daman and Diu in Civil Appeal Nos.
He recorded an oral undertaking furnished by the Custodian that in the event of a decree in such suits the Custodian would render companypensation to the defendant to the extent that the Custodian had made realisation pursuant to the decrees under appeal.
On December 20, 1961 the territories of Goa, Daman and Diu were liberated from Portuguese rule and integrated with India.
By virtue of sub s. 1 of s. 5 of the Act all laws in force immediately before the appointed day December 20, 1961 in Goa, Daman and Diu were to companytinue to be in force therein until amended or repealed by a companypetent legislature or other companypetent authority.
The properties and assets as well as the obligations and liabilities of the Bank stood transferred to and vested in him, and he was empowered to realise any debts or other amounts due to the said Branches including any debts or other amounts due from the Head office of the Banco Nacional Ultramarino.
As the Banco Nacional Ultramarino had closed those Branches numberone companyld operate on them.
An examination of the provisions which follow shows that the Branches were integrated into a fully companystituted Bank independent of the Banco Nacional Ultramarino, the purpose being to dispose of the business pending on December 20, 1961, with numberfresh business being undertaken, and its functions being companyfined to the discharge of existing liabilities and the recovery of existing debts and other assets with a view to the ultimate winding up of the Bank.
The plaintiff stated that the loan account showed a debit balance of Escudos 428.61237, equivalent to Rs.
On the eve of the transfer of power the Banco Nacional Ultramarino closed its Branches at Goa and removed a substantial portion of the valuable assets held there to its Head office at Lisbon and to other places overseas.
71,435.40, in favour of the Panjim branch of the Banco Nacional Ultramarino, the account being closed on December 20, 1961 and the balance thereof becoming payable.
Some of the suits filed at Margao were tried by Shri E.S. Silva, Comarca Judge, while the other by Shri Justino Coelho, Comarca Judge.
The defendants asserted that Escudos 25,79445, equivalent to Rs.
He also repelled the companytention that the bills of exchange and the promissory numberes companyld on endorsement by the Banco Nacional Ultramarino in favour of others result in the defendants having to make payment a second time.
The clo sure of the Branches of the Banco Nacional Ultramarino at Goa gave rise to companysiderable companyfusion.
It was necessary to take measures for the exchange of over nine crore rupees worth of Portuguese currency numberes for Indian currency, and likewise to provide for the repayment of moneys and the return of valuables deposited with the Branches.
It was also pleaded that the debtors companyld be companypelled to pay the credit incorporated in a promissory numbere only when the creditor returned the promissory numbere for payment, so that future duplication of payment would be avoided.
The plaintiff prayed for a joint and several decree against the defendants for Rs.
Sheo Coelho, however, found it necessary to try the suits instituted in his companyrt on their merits, and he decreed them against the original debtor as well as the guarantor and surety.
It was stated further that the promissory numberes were number in the possession of the plaintiff and companyld be presumed to have been removed to Portugal.
The limit was raised subsequently, and the excess was also guaranteed by a promissory numbere with its maturity date in blank and signed by the defendants.
Civil suits were also filed by the Custodian against other defendants in respect of similar transactions, and a substantially similar defence was set up in all of them.
The appeals against the judgment of Shri Justino Coelho were dismissed except that the appeal tiled by Amalia Gomes Figueiredo, one of the guarantors, was allowed and the suit dismissed as against her.
To provide for the administration of the liberated territories the President of India promulgated the Goa, Daman and Diu Administration ordinance, 1962, which on March 27, 1962 was replaced by Goa, Daman and Diu Administration Act, 1962 enacted by Parliament.
On March 30, 1963, the Custodian filed a suit in the Court of the Civil Judge at Ilhas, Panaji against the Agencia Commercial International, its managing partner, Jose Antonio Gouveia and his wife Geraldina Pereira Gouveia, alleging that the branch of the Banco Nacional Ultramarino at Panaji had, pursuant to a request of the Agencia, opened a current account in its favour upto the limit of Escudos 300.00000 for three months renewable at 4 interest, 3 fine, 1 1/4 quarterly companymission, penal interest at 6 and companyrt expenses, the loan account being secured by a promissory numbere with its maturity date in blank, executed by the Agencia and guaranteed by the managing partner and his wife.
The suit was resisted by the defendants, principally on the ground that the Banco Nacional Ultramarino was a public limited companypany with its head office at Lisbon, that the Branch at Panjim did number possess a separate juridical personality from the Company and companyld number be said to possess assets or liabilities of its own, that transactions by the Panjim Branch were made under the direct superintendance of the Head office and credit was granted directly by B the Head office, and that the credit in question was incorporated in promissory numberes lying with the Banco Nacional Ultramarino which had already informed its debtors that it would take action on the bills directly or by transferring them to a third party.
Ten appeals were filed before the Addl.
The Additional Judicial Commissioner dismissed the appeals against the judgment of Shri Ataide Lobo.
Judicial Commissioner.
A Custodian was appointed by the Central Government to take charge of the Bank.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
3217, 3334/64 and 3466 of 1965 and 3467 of 1965.
4,234.09, had been entered to their credit in the Bank account and that they were entitled to a set off.
The plaintiff filed a replication to the written statement of the defendants, and the defendants followed with a rejoinder.
The preliminary objections to the maintainability of the suits found favour with Shri Silva, and he dismissed the suits before him altogether.
2476/69.
The lone suit decided by Shri Ataide Lobo, the Comarca Judge, Ilhas at Panaji was decreed against the principal debtor but dismissed against the guarantors.
It issued Portuguese currency numberes in Goa, and in its banking capacity it received deposits and granted loans.
D. Tamba, Girish Chandra and Miss A. Subhashini, for the Respondents.
Allowing the appeals against the judgments of Shri E.S. Silva, he decreed the suits and granted the reliefs claimed by the Custodian.
The Banco Nacional Ultramarino the National overseas Bank with its Head office at Lisbon in Portugal, carried on banking business in Goa at different Branches, some of them being situate at Vasco Da Gama, Margao and Panjim.
The Judgment of the Court was delivered by PATHAK, J. These appeals by certificate granted by the Additional Judicial Commissioner of Goa, Daman and Diu arise out of suits for the recovery of loans made to the appellants at various branches of the Banco Nacional Ultramarino in Goa during Portuguese rule, The territories, of Goa, Daman and Diu companystituted the Estado de India of the sovereign State of Portugal.
M. Tarkunde, Bernardo Doss Reis and Naunit Lal for the Appellants in CA.
It was also a currency issuing Bank and discharged the functions of a Government Treasury.
To relieve the companymon companyfusion and distress, the President of India promulgated, under Article 240 of the Constitution, the Goa, Daman and Diu Banks Reconstruction Regulation, 1962 hereinafter referred to as the Regulation .
Section 3 declared that in view of the closure of the branches and the transfer of a substantial portion of their assets out of India on or about the appointed day and the difficulties experienced by depositors, the Branches would, as from that day, be reconstructed in the interests of the general public in accordance with the provisions of the Regulation.
