The court emphasized the importance of following the Manual of Instructions in bank operations and considered the dissolution of the partnership firm in determining the authority to operate the bank account.

JYOTIRMAY BHATTACHARYA, J.

1. This mandamus appeal is directed against an order passed by a learned single judge of this court on 24th April 2017 disposing of the writ petition being W.P. No. 13284 (W) of 2016 filed by the writ petitioners/appellants.

2. The writ petitioners along with the respondent no. 3 were carrying on business in co-partnership. Such partnership was constituted on the basis of a Partnership Agreement executed by all the partners. The mode of operation of the partnership bank account is provided in clause 13 of the Partnership Agreement, which runs as follows:-

“That the partners shall control the finance and banking account shall be operated by Sri Bireshwar Das, the party of the second part and Sri Tridib Das, the party of the fourth part jointly.”

3. The private respondent being one of the partners of the said partnership firm wrote a letter to the concerned bank, requesting the Manager of the said bank to freeze the bank account of the said partnership firm.

4. On such request being made by the said partner, the Bank of India directed debit freeze of the bank account maintained by the partnership firm.

5. The legality of such action on the part of the bank was challenged by the writ petitioners/ appellants by filing the said writ petition.

6. Fact remains that the respondent no. 3 filed a suit for dissolution of the said partnership firm but the said suit was ultimately dismissed for default. Thereafter, no step was taken for restoration of the said suit.

7. The writ petitioners-appellants contends that the business of the said partnership firm is still being continued and as such the bank ought not to have entertained the letter written by one of the partners, who was not authorized to operate the bank account as per the contract which the partnership firm had with the bank at the time of opening the bank account.

8. The learned single judge of this court by referring to the Manual of Instructions held that the bank did not commit any illegality in freezing the bank account of the partnership firm on the request of one of the partners. The relevant clause of the Manual of Instruction which impressed the writ court to pass the impugned order, runs as follows:-

“Objection by one of the partners to operations:-

29. On receipt of intimation from one (or more) of the partners to the effect that bank should not allow operations on the firm’s account by the other partners, all operations on the account must be stopped. A joint letter must be addressed and sent to the firm and all partners, stating that having regard to the objection by one (or more) of them, the bank is compelled to stop all operations on the account until all the partners jointly agree to a particular mode of operation. If after receipt of such a letter, any partner issues some legal contentions, the Branch Manager should make a reference to the Head Office giving all the relevant facts and the copies of the relevant correspondence.”

9. Relying upon the said internal instructions, the learned single judge disposed of the writ petition by holding that the bank has acted prudently and in terms of the Manual of Instruction by directing debit freeze of the account. It was directed that till the dispute inter se the partners of the partnership firm is settled, it would be inappropriate to permit any of the partners to operate such bank account. It was also directed that so far as understanding of the charging of interest is concerned, it would be open to the parties to file appropriate proceeding in respect thereof.

10. The legality and/or propriety of the said order is under challenge in this mandamus appeal.

11. It is rightly argued by Mr. Sen, learned advocate appearing for the appellants that the Manual of Instruction has no statutory force.

12. He also argued that even the instruction contained in the Manual of Instruction is not a part of the contract between the bank and the partnership firm and as such these instructions have no binding effec