R.C. Jain, Presiding Member— “Whether in view of the provisions of Section 18 of the Negotiable Instruments Act, 1881, it is obligatory on the part of the bank to honour a cheque where the figures denoting the amount of the cheque differ in words and figures and whether the Bank can be held guilty of deficiency in service for returning such a cheque unpaid”?, is the important question which needs determination in the present case.

2. The facts and circumstances leading to the present revision petition are that M/s Metal Pack Industries (respondent No.1) was availing Cash Credit Hypothecation limit from the Allahabad Bank to the tune of Rs.4.60 lacs against the stocks of raw material, work in stocks, finished goods, plant and machinery. One of the condition of the said loan was that respondent No.1 shall keep the goods insured at all times during the period of loan from an insurance company. To that end, respondent No.1 had issued a cheque bearing No.290121 dated 24.11.90 in the sum of Rs.1663/- towards insurance premium for the period 24.11.90 to 23.11.91. The said cheque was presented to the petitioner-bank, who in turn returned the check unpaid to the insurance company for t