Judgement

SHAH, J. : This appeal is filed with certificate granted by the High Court of Punjab.

2. 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. In 1946 the Government of undivided Punjab devised a scheme for procurement of foodgrains and appointed the Syndicate to buy foodgrains on its behalf. For due performance of the conditions of the scheme, the Syndicate was required to make a deposit with a recognized Bank. The Syndicate deposited an amount of Rs 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. The terms of the receipt were these :

"The United Commercial Bank Limited. No Misc. 9872-4/18 Okara (Punjab) 29th March, 1947.

Received from the Okara Grains Buyers Syndicate Limited, Okara A/c District Magistrate, Montgomery Rupees Forty thousand only as a deposit at the rate of 2 per cent per annum to remain till notice of twelve months for its withdrawal by either side expires.

For the United Commercial Bank Ltd.

(Sd.) . .