Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Negotiable lnstrument Act 1881 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Negotiable Instrument - Firm presents cheque to Bank - Amount kept in the hands of Potdar of Bank - If payment to firm - Statement in judgment about happening in court - Challenge if and when permitted - Vicarious liability for criminal act of servant - Negotiable Instruments Act, 1881 (XXVI of 1881), ss. 86, 118. Rcspondenls 1 and 2 carried on business under the name and style of M/s. Jogilal Prohhu Chanel. Under a cash credit agreement in favour of the Bihar Sharif Branch of the Bank and on the strength of a promissory note executed by the firms, the firm drew a cheque on the Bank which was passed for payment. The High Court found that the money was not paid to the firm but was kept in the hands of the Potdar a servant or agent of the Bank for being paid to another firm at Patna. This person accompanied the respondents up to Patna but failed to meet the respondents at the shop of the Patna firm which was the place agreed upon. Before the High Court the counseI for the present appellant conceded that the Potdar had taken the money with him. Before this Court it was contended on behalf of the appellant that no concession was made as stated in the judgment of the High Court, to the effect that the Potdar took the money with him. It was further contended that the payment to the Potdar should be deemed to be payment to the firm. Reliance was also placed on ss. 85 and 118 of the Negotiable Instruments Act, 1881. Finally it was contended that the Bank could not be heId responsible for the money misappropriated by the Potdar because his act was a criminal act. |
Judge | Hon'ble Mr. Justice J.R. Mudholkar |
Neutral Citation | 1963 INSC 21 |
Petitioner | Bank Of Bihar Ltd. |
Respondent | Mahabir Lal & Ors. |
SCR | [1964] 1 S.C.R. 842 |
Judgement Date | 1963-02-07 |
Case Number | 340 |
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