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1945 Supreme(Mad) 163

ALFRED HENRY LIONEL LEACH
R. N. Kapur, partner of Wright and Co. – Appellant
Versus
The Travancore National and Quilon Bank, Limited in liquidation by Official Liquidator – Respondent


JUDGMENT

Alfred Henry Lionel Leach, C.J.

1. The question in this appeal is whether Article 85 of the Indian Limitation Act applies to a case where a customer of a bank has a current account which at times is in credit and at other times is in debit, the bank having granted to the customer the right to overdraw.

2. The appeal arises out of a suit filed by the Official Liquidators of the Travancore National and Quilon Bank, Ltd., to recover from the partners of a firm of stock brokers carrying on business in Madras under the style of Wright and Co., money overdrawn by them on a current account with the bank. There were two partners, the appellant (the first defendant) and V.H. Ramaswamy (the second defendant). The defendants opened the account on the 16th April, 1936. On the 31st August, 1936, the bank agreed to allow them to overdraw the account to the extent of Rs. 10,000 on the furnishing of collateral security. On the 21st October, 1936, the accommodation was increased to Rs. 13,200. As security the partners executed promissory notes in favour of the bank and deposited shares which they held in limited liability companies, the share certificates being accompanied by transfer forms s










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