IMPORTANT POINT
The Banker when he receives money from a customer does not hold the money in a fiduciary capacity. The relationship is that of debtor and creditor only.

JUDGMENT

Ramalingam. J. - This petition has been filed by the two accused, viz, K.P. Menon, Chairman, Catholic Syrian Bank Ltd., Trichur, and B.K. Natarajan, Manager. Catholic Syrian Bank Ltd., Vellore to quash the process issued to them in C.C. 420 of 1984 on the file of the J.F.C.M. No.1, Vellore, North Arcot Dt. which was taken cognizance for offences under Ss. 409 and 477-A read with S. 34, I.P.C. on a complaint given by N. Punithavathi Manian, the respondent herein wife of Balasubramaniam in the following circumstances: - The respondent Punithavathi Manian is a partner of: Sathya Narayana Chit Funds, Vellore. Her husband is also a partner in the same firm, apart from being a partner along with others in Lakshmi Narayana Chit Funds and Lakshmi Narayana Chit Corporation, Sathya Narayana Chit Funds, in which the respondent and her husband are partners along with others, has been enjoying certain credit facilities from the Catholic Syrian Bank, Vellore Branch, hereinafter referred to as the 'Bank' and they owe money to the Bank. The respondent in her personal capacity deposited the following amounts

S. No.

Deposit No.

Amount deposited.

Maturity value

1.

48/83

5000

Rs. 5975

2.

11/84

30000

35850

3.

12/84

15000

17975

4.

13/84

20000

23900

70000

83700

2. The respondent had an account with the Bank of Baroda, Vellore branch also. On 5-6-84, the respondent wrote through Bank of Baroda for premature encashment of the aforesaid deposits with the Bank (Catholic Syrian Bank) with regard to deposit Nos. 48/83, 11/84 and 12/84. There was no request from the respondent for premature encashment of the deposit No. 13/84. By letter dated 7-6-1984, the Bank of Baroda wrote to the respondent that, in pursuance of the respondent's request, they approached the Bank for premature encashment of her three deposits and they were informed that the Bank has referred the matter to their Head Office and they were asked to wait for a reply from the head office. According to the respondent, the information furnished by the Bank to the Bank of Baroda is contrary to the endorsement found in the respondent's accounts with reference to the deposits (family welfare deposits) wherein the Bank has endorsed that all the accounts have been closed on 27-4-1984. The further case of the respondent is that she has not advised the Bank for any premature payments of her deposits, on 27-4-1984. The entries made by the Bank with reference to her deposits being closed on 27-4-1984 amount to falsification of her accounts, since premature closure of her deposits was not intimated to her, nor to Bank of Baroda. Later on, the respondent received from the Bank of Baroda, a letter informing her that the Bank has exercised its lien over the deposits bearing Nos. 48/83, 11/84 and 12/84, for a sum of Rs. 65,000 and have adjusted the amounts with the account of Messrs. Sathyanarayana Chit Funds, wherein the respondent is a partner. According to the respondent, Sathyanarayana Chit Funds and Lakshminarayana Chit Corporations have closed their accounts on 27-1-1984 and Lakshminarayana Chit Funds closed their account on 21-5-1984. The closure of the above three accounts have been completed and such closure has been accepted by the aforesaid three firms. By 21-5-1984, none of the firms mentioned above had any liability to the Bank. By letter dated 31-5-1984, these three firms instructed the Bank not to deal with their accounts except on authorisation in writing signed by all the partners. Contrary to the aforesaid, according to the respondent, credit entries have been falsely made in the accounts of Sathyanarayana Chit Funds on 9-6-1984. On the very same date, the account of the respondent was reopened and once again it was closed. These acts on the part of the Bank are nothing but a deliberate falsification of accounts and wrongful gain for the Bank. It is under these circumstances, the respondent gave the complaint, which has been taken on file as C.C. 420 of 1984 on the file of J.F.C.M