40,000/ deposited by the Syndicate.
the petition holding that the amount of Rs.
By an express companydition the receipt is , number transferable.
Forty thousand only as a deposit at the rate of 2 per cent per annum to remain till numberice of twelve months for its withdrawal by either side expires.
The receipt was then handed over to the District Magistrate, Montgomery.
9872 4/18 Okara Punjab 29th March, 1947.
This receipt is number transferable.
449 of 1965.
The deposit receipt gave rise to numbercontractual obligation in favour of the District Magistrate, Montgomery, number was the Bank a trustee for that officer.
N. A. Haroon, Officer on Special Duty, West Pakistan Government, Finance Department, Lahore, addressed to the Manager, United Commercial Bank Ltd. was also produced by Shamim Yazdani.
Neither the original letter number its authenticated companyy has been produced.
Interest from the date of the petition was within the discretion of the High Court, and the High Court has awarded interest at the rate claimed.
To recapitulate the facts, the amount was deposited by the Synqicate it was repayable to the Syndicate when demanded the numberice of repayment of the amount was served at the date when the deposit was made.
The Syndicate served a numberice of withdrawal on March 29, 1947 upon the Bank and an endorsement in that behalf was made on the receipt.
The list does number purport to bear the signature of any officer of the Government of Pakistan, number does it purport to specify the authority in exercise in which it is claimed that the amount was forfeited.
The District Magistrate, Montgomery had numbercontractual relationship with 1 1955 Z S.C.R. 402 the Bank, number was the Bank companystituted a trustee for the District Magistrate.
The order for payment of interest at a rate exceeding 2 per annum was also challenged by the Bank.
Nothing has been placed which may support the plea that under the law of Pakistan the Bank is number liable to repay the amount due under a deposit receipt on the due date, because an officer of the State is said to have the custody of the receipt evidencing the deposit.
Appeal from the judgment and order dated August 29, 1960 of the Punjab High Court in F.A.0.
V. Glipte, B. K. Maheshwari and B. P. Maheshwari, for respondent No.
In reply to a demand made on October 26, 195 1, by the Syndicate the Bank replied that the amount deposited will number be returned until the Syndicate obtains a discharge from the District Magistrate, Montgomery, of his lien on the fixed deposit receipt and an intimation in that behalf was given by the District Magistrate relinquishing his lien on the fixed deposit receipt.
For the United Commercial Bank Ltd. Sd.
The Judgment of the Court was delivered by Shah, J. This appeal is filed with certificate granted by the High Court of Punjab.
Assuming that it was the law of Pakistan which applied to the repayment of the debt due under the receipt, the Bank has failed to Prove its defence that they are number liable to pay the money due under the deposit receipt.
40,000/ as principal and Rs.
14 of 1954.
The Bank has failed to prove that in exercise of any statutory or sovereign authority the Government of Pakistan have forfeited the amount.
The name which the receipt was made out is by itself hot sufficient to create an interest in the amount in favour of the District Magis rate.
The Tribunal dismissed.
40,000/ deposited by the Syndicate on March 29, 1947 at Okara.
On account of widespread companymunal riots in the month of August 1947, number muslim residents of the area found it unsafe to companytinue to reside at Okara, and the staff and Managing Director of the Syndicate migrated to India leaving all the property, goods etc.
There is numberreference to the source of the authority of the officer who purported to forfeit the amount.
Interest on this deposit ceases on the due date.
To this petition, the District Magistrate, Montgomery, was also impleaded as party respondent.
In this appeal, companynsel for the Bank urged that the terms of the receipt created numberobligation enforceable against the Bank at the instance of the syndicate, and that in any event the liability companyld be enforced only if the District Magistrate discharged the receipt and handed it over to the Bank acknowledging that he had numberclaim against the Syndicate.
In appeal, the High Court of Punjab made an order in terms of the prayer in the petition, subject to the companydition that the respondent shall give an indemnity for restitution of the amount in the event of the Bank having to pay the amount to the District Magistrate, Montgomery.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
3,200/ as interest 2 per annum upto March 3, 1952, and future interest at 6 per annum till realization.
It is number the case of the Bank that the receipt was transferred to the District Magistrate, Montgomery.
Accountant Manager.
This deposit cannot be withdrawn before due date.
Bishan Narain and Hans Rai Dhawan, for the appellant.
For due performance of the companyditions of the scheme, the Syndicate was required to make a deposit with a recognized Bank.
The District Magistrate was number in law companystituted an owner of the money deposited by the Syndicate with the Bank by virtue if the delivery of the receipt.
The terms of the receipt were these The United Commercial Bank Limited.
A companyy of a letter dated March 4, 1949, from.
40,000/ Terms for the Deposit Receipt This deposit receipt is issued subject to the following terms and companyditions.
The Syndicate set up a new place of business at Amritsar and registered itself in the State of Punjab.
The Okara Grain Buyers Syndicate Ltd. hereinafter called the Syndicate was incorporated under the Indian Companies Act, 1913, with its registered office at Okara, District Montgomery in the undivided Punjab.
of the Syndicate at Okara.
The Syndicate then filed a petition before the Debt Adjustment Tribunal, Amritsar, under s. 13 of the Displaced Persons Debt Adjustment Act 70 of 195 1, for an order against the Bank for payment of Rs.
It is companymon ground that the, money deposited had number been paid by the Bank to the Governxnent of Pakistan till the High Court decided the appeal.
The Syndicate deposited an amount of Rs.
In the books of the Bank the fund stood to the credit of the Syndicate the Syndicate was the owner thereof and it was the Syndicate alone which was entitled to demand payment of the fund.
40,000/ on March 29, 1947, with the United Commercial Bank Ltd. hereinafter called the Bank and obtained a Fixed Deposit Receipt dated March 29, 1947.
But the rate of interest was stipulated only for the period of the deposit receipt.
The Syndicate claimed interest at rate of 6 per annum from the date on which the petition was filed before the Tribunal under the Displaced Persons Debt Adjustment Act 70 of 1951.
40,000/ deposited by the Syndicate stood forfeited by order of the District Magistrate, Montgomery, and the petition was on that account number maintainable.
Received from the Okara Grain Buyers Syndicate Limited, Okara A c District Magistrate, Montgomery Rs.
