135000/ was deposited with the bank at lahore for opening a fixed deposit account subject to the companyditions which the bank set up.
pearey lal on account of amount to be remitted to calcutta branch for preparing various f.d.
lahore for the new bank of india limited the 18th day of sd.
125000/ rs.
a decree on admission was passed against the bank for rs.
153 and 153a of the indian companypanies act 1913 for settlement of the liability of the bank.
the plaintiff accordingly claimed that the bank was a trustee for transmission of the amount and in the absence of any instructions given by him for opening a fixed deposit account in respect of the amount transmitted the bank stood qua the plaintiff in a fiduciary relation and was liable to refund the full amount.
in respect of these two transactions the bank executed receipts which are set out below received the sum of rs.
125000/ on july 18 1947 into the bank at lahore with instructions to transmit the same the to bank branch at calcutta which it then proposed to open in the near future.
appeal by special leave from the judgment and decree dated june 23 1959 of the calcutta high court in appeal from original decree number 50 of 1955.
in december 1947 after the expiry of the period of the moratorium the plaintiff applied to the banks branch at calcutta for facility to withdraw the whole amount but the calcutta branch raised certain technical objections against such a companyrse.
in substance it was claimed by the plaintiff that the amount lying with the bank at calcutta was number a deposit within the meaning of the scheme and was number liable to any reduction.
the finding of the trial companyrt were companyfirmed in appeal by a division bench of the high companyrt at calcutta.
lahore for the new bank of india ltd.
justice bachawat of the high court of judicature at calcutta decreed suit number 1039 of 1948 filed by one pearey lal hereinafter called the plaintiff for a decree for rs.
the plaintiff who was a resident of lahore had accounts with several banks including the new bank of india limited in view of the impending partition the plaintiff was anxious to transfer his moveable property outside the territory it was apprehended would be included in pakistan and he gave instructions for transferring his accounts with the bank to its other branches in india.
illegible july 1947.
the bank submitted that the amount of rs.
an amount of rs.
the trial companyrt held that even though the plaintiff failed to prove the instructions in the month of september 1947 set up by him countermanding transmission it was established on the evidence that the plaintiff had entrusted to the bank rs.
135000/ was deposited by the plaintiff at its head office at lahore for the purpose of opening a fixed deposit account in the name of the plaintiff upon the terms that the fixed deposit would carry interest as on the respective dates of the deposits that it was agreed that the plaintiff would be allowed to take loans upto 90 of the deposit at a rate of interest of half percent above the current fixed deposit rates and that the amount would be transmitted to the calcutta branch of the bank for the purpose of crediting the same to the fixed deposit account of the plaintiff.
135000/ for transmission and the plaintiff having given numberfurther instructions the bank held the amount as trustee for the plaintiff and that the plaintiffs claim was number liable to be reduced under the scheme sanctioned by the high companyrt of east punjab.
10000/ rupees ten thousand only through mr.
the bank offered to pay the amount due to the plaintiff under the scheme of arrangement and also to allot shares of the value of 5 in accordance with the scheme.
during the pendency of the suit the high companyrt of east punjab sanctioned a scheme for arrangement under ss.
l. gosain and k. l. mehta for the respondent.
a branch of the bank was opened at calcutta on september 24 1947 but within a few days thereafter the bank ceased making payments.
the bank denied the alleged instructions in september 1947 companyntermanding the original arrangement and contended that the plaintiff was bound by the scheme of arrangement sanctioned by the high companyrt of east punjab.
81000/ and the suit was companytested by the bank for the balance of the claim.
the companyrt also negatived the plea of the bank that the amount of rs.
by the first clause of the scheme the expression deposit was to include fixed deposits banks own cash certificates current accounts deposits at call savings fund accounts amounts lying in sundries or in any other kind of credit accounts bank drafts cash orders and documents of the like nature and amounts due to bankers over and above the value of government securities lying with them against such depositors.
manager.
19 7 47.
the two amounts were transmitted by the bank to calcutta.
illegible manager.
civil appellate jurisdiction civil appeal number 398 of 1960.
it was directed by the scheme as it finally emerged that the depositors were to be paid 701/2 of the deposits held by them and to he allotted shares of the face value of 5 of the deposits.
one lac twenty five thousand only from mr.
december 20.
pearey lal for transmission to our calcutta office for making up various f. d. receipts at his instance when he calls upon them personally on or after the opening date of the branch.
10000/ was also paid into the bank at lahore on july 19 1947 with similar instructions.
135000/ in the calcutta high companyrt on its original side.
the bank had its registered office originally at lahore but after the partition of india the office was transferred to amritsar.
receipts subject to his instructions on or after the opening date when he would call upon them personally.
maheshwari for the appellant.
received the sum of rs.
veda vyasa s. k. kapur and b.p.
with special leave the bank has appealed to this companyrt.
he also paid an amount of rs.
on march 24 1948 the plaintiff companymenced an action against the bank inter alia for a decree of rs.
the judgment of the companyrt was delivered by shah j. mr.
135000/ with interest against the new bank of india limited the appeal of the bank against the decree was dismissed by a division bench of the high companyrt.
