The place of repayment of a loan on an overdraft account is impliedly the office where the overdraft account is maintained and the state of accounts can be ascertained.

( 1 ) THIS is a suit for recovery of the monies due to the plaintiff bank in respect of an overdraft account which the defendant had with the Ranchi branch of the plaintiff bank. The defendant executed in favour of the plaintiff bank a promissory note dated 14-8-1948 and a letter of lien by way of security. In or about the month of October. 1949, the Ranchi branch of the plaintiff bank was closed and the books and papers of that branch of the plaintiff bank were transferred to its Head Office at No. 135, Canning Street, Calcutta.

( 2 ) BY letter dated 20-2-1951, sent from Calcutta, Mr. H. N. Sen, attorney for the plaintiff bank demanded from the defendant repayment of the said loan either to the plaintiff bank or to him as its attorney.

( 3 ) BY its reply dated 26-2-1951, the defendant repudiated the claim entirely.

( 4 ) THE suit was instituted on 9-5-1951.

( 5 ) BY consent, the issue as to jurisdiction was tried as a preliminary issue.

( 6 ) BEFORE the overdraft account was opened, the defendant applied to the Ranchi Office plaintiff bank for the grant of overdraft facilities. I am not satisfied that the application was addressed to the Head Office. The original application has not been produced. I am not also satisfied that Mr. D. P. Sen Gupta, a director of the defendant came to the Head Office or that he procured the sanction for overdraft by the Head Office at Calcutta. This case was not made by the plaintiff bank on the first day of the trial. There is evidence to show that the Ranchi branch obtained sanction of the Head Office for the grant of overdraft facilities to the defendant. The defendant had nothing to do with this sanction which was purely a matter of internal arrangement between the Ranchi branch and the Head Office. Both the offer and acceptance relating to the overdraft arrangement were made at Ranchi. The inter-departmental sanction of the overdraft by the Head Office at Calcutta is no part of the cause of action.

( 7 ) THE plaintiff's counsel contends that the defendant must seek its creditor and pay the plaintiff at its registered office at Calcutta and therefore, the Court has jurisdiction.

( 8 ) IN -- 'in re Eider,', 1893 P. 119 at p. 136 (A), Bowen, L. J. stated. :"the general rule is that where no place of payment is specified, either expressly, or by implication, the debtor must seek his creditor. In --'haldane v. Johnson', (1853) 8 Exch. 689 (B), it was held that a covenant for payment of rent where no particular place of payment is mentioned, is analogous to a covenant to pay a sum of money in gross on a day certain, in which case it is incumbent upon the covenantor to seek out the person to be paid and pay or tender him the money. "

( 9 ) THIS rule should he applied with caution in this country, sec -- 'ramalinga Iyer v. Jayalakshmi', AIR 1941 Mad 695 (C ).

( 10 ) THE obligation to pay involves the obligation to find the creditor and to pay him at the place where he is when the money is payable where ho other place for payment is fixed by the contract either expressly or by implication.

( 11 ) THUS in the absence of an express or implied term to the contrary the prompt dower ought to be paid to the wife at the place where she resides when the dower is demanded -- 'sm. Tulsiman Bibi v. Abdul Latif Mia', AIR 1936 Cal 97 (D) and principal and interest under a debenture ought to be paid at the place where the debenture holder is when the money is payable under the debenture.-- Towler v. Midland Electric Corporation', (1917) 1 Ch 656 at p. 661 (E ). In such cases the application of the general rule is necessary in order to preserve the obligation to pay, because if the debtor is not bound to pay anywhere, the creditor has got a right which can never be enforced, see -- 'drexel v. Drexel', (1916 1 Ch 251 at p. 261 (F) ).

( 12 ) IN -- 'soniram Jeetmull v. R. D. Tata and Co. Ltd. ', AIR 1927 PC 156 (G), the defendant carrying on business in Calcutta undertook to make good and pay