PANCHAPAKESA AYYAR, BASHEER AHMED SAYEED
The New Central Hall, a firm – Appellant
Versus
United Commercial Bank, Madurai – Respondent
This is an appeal by The New Central Hall, a firm consisting of two partners, Ismail Ibrahim Sully and Moosa Ibrahim Sully, plaintiffs in O.S. No. 40 of 1952 on the file of the Subordinate Judge, Madurai, against the dismissal of the suit, though without costs. The suit has been filed by them against the United Commercial Bank, Ltd., Madurai, for recovering damages of Rs. 50,000, with interest at 6 per cent. per annum from the date of plaint and costs, for dishonouring 11 cheques of theirs issued on the defendant Bank, in the first week of November, 1951, though the defendant Bank had sufficient funds of theirs in its hands and could have easily paid all the 11 cheques. The indignant plaintiffs withdrew their entire bank balance from this Bank on 10th November, 1951 and closed their accounts despite the Bank’s regret and offer to explain the position to the payees of the cheques. The learned Subordinate Judge accepted the fact of dishonouring the cheques by the Bank, by endorsing on the cheques “Refer to the drawer”, though the Bank had at that time the plaintiffs’ funds enough to meet all the cheques. He held, however, that, on a true construction of section
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