CHAKRAVARTTI, C. J.

( 1 ) THE appellant bank which had obtained eight Demand Drafts from the Suri Banrch of the Pioneer Bank Ltd. against cash tender put in a claim in the liquidation of the latter bank for prior payment, but was admitted by the Liquidators only as an ordinary creditor. At the settlement of the claims before the learned Company Judge, the appellant's claim for being treated as a preferential creditor was pressed again, but it was rejected by Banerjee, j. , who admitted as an ordinary creditors one Provash Chandra Mitra, the Manager of the appellant bank, in whose favour the drafts had actually been issued. The present appeal is directed against that order. It is contended that the amount of the drafts was actually paid over to the Suri Branch of the Pioneer Bank for transmission to Calcutta and there having thus been an entrust-ment for a specific purpose, the appellant bank was entitled in the liquidation of the Pioneer Bank to be repaid its money in preference to the ordinary creditors.

( 2 ) THE undisputed facts are that on 31-8-1948, the appellant bank paid a sum of Rs. 34,000/-to the Suri Branch of the Pioneer Bank Limited through its Manager, Provash Chandr

Click Here to Read the rest of this document