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1 - 10 of 23 (0.37 seconds)The Limitation Act, 1963
Section 171 in The Indian Contract Act, 1872 [Entire Act]
Section 3 in The Indian Contract Act, 1872 [Entire Act]
Gurbax Rai And Ors. vs Punjab National Bank, New Delhi on 20 March, 1984
In Gurbax Rai v. Punjab National Bank, New Delhi AIR 1984 SC 1012, it was held that where a firm pledged its goods against cash credit facility extended to it by the Bank and the Bank on destruction of part of goods by fire received certain amount on account of destruction of the goods from the insurer, the Bank was liable to give credit of the same in the cash credit account of the same. It was not open to the Bank to adjust the amount recovered for the pledged goods for wiping out separate dues of the individual partners. Certain submissions were made distinguishing the said decision, that on facts the same is not applicable to the present case. The question which was decided in the said decision was that is it open to the Bank to adjust the amount recovered for the pledged goods for wiping out separate dues of the individual partners.
Punjab National Bank And Ors vs Surendra Prasad Sinha on 20 April, 1992
Again the Supreme Court in the case of Punjab National Bank and Ors. v. Surendra Prasad Sinha, dealing with adjustment of fixed deposit receipts deposited by guarantor being adjusted towards debt barred by limitation has held as under:
Syndicate Bank vs Vijay Kumar And Others on 5 March, 1992
The Supreme Court in the case of Syndicate Bank v. Vijay Kumar and Ors. referred to some passages in the textbooks on the scope and meaning of the expression 'banker's lien' which are extracted as hereunder: "6. In halsbury's laws of England, Vol.20, 2nd Edn., p.552, Para 695, lien is defined as follows: "lien in its primary sense is a right in one man to retain that which is in his possession belonging to another until certain demands of the person in possession are satisfied. In this primary sense it is given by law and not by contract". In chalmers on bills of exchange, thirteenth edition, Page 91 the meaning of "banker's lien" is given as follows: "a banker's lien on negotiable securities has been judicially defined as "an implied pledge". A banker has, in the absence of agreement to the contrary, a lien on all bills received from a customer in the ordinary course of banking business in respect of any balance that may be due from such customer". In chitty on contract, twenty-sixth edition, Page 389, Paragraph 3032 the banker's lien is explained as under: "by mercantile custom the banker has a general lien over all forms of commercial paper deposited by or on behalf of a customer in the ordinary course of banking business. The custom does not extend to valuables lodged for the purpose of safe custody and may in any event be displaced by either an express contract or circumstances which show an implied agreement inconsistent with the lien...the lien is applicable to negotiable instruments which are remitted to the banker from the customer for the purpose of collection. When collection has been made the process may be used by the banker in reduction of the customer's debit balance unless otherwise earmarked". In paget's law of banking, eighth edition, Page 498 a passage reads as under: "the banker's lien apart from any specific security, the banker can look to his general lien as a protection against loss on loan or overdraft or other credit facility. The general lien of bankers is part of law merchant and judicially recognized as such".
Bombay Dyeing &Manufacturing Co., Ltd vs The State Of Bombay And Others on 20 December, 1957
In the light of Section 25(3) and Sections 60 and 171 of the Act specified supra and also in the light of the views expressed by the Apex Court in Bombay Dyeing's case (supra) and Punjab National Bank's case (supra), in particular, this Court is of the considered opinion that the concurrent findings recorded by both the Court of first instance and also the appellate Court cannot be sustained since the banker's lien and the right of a banker to make suitable deductions or to make adjustments by way of set off to be upheld positively even if otherwise it may be time barred and in view of the same, the appellant-defendant is bound to succeed and accordingly the second appeal is hereby allowed. But however since on the ground of banker's lien, the appellant bank is succeeding, the parties to the litigation to bear their own costs.