The relationship between a banker and a depositor in regard to a general deposit is that of a debtor and creditor.

JUDGMENT :- This appeal is directed against the decree and judgment of the learned Subordinate Judge of Dindigul in A. S. Nos. 70 and 71 of 1954 reversing the decree and judgment of the learned District Munsif of Dindigul in O. S. No. 50 of 1954.

2. The facts are : The plaintiff is the Dindigul Urban Co-operative Bank Ltd., through principal officer and secretary, Sri Nagalswami. The first defendant deposited a sum of Rs. 2000, on 19-12-1952 under the savings bank account with the said bank and a pass book had been issued to the first defendant. As per rules, whenever withdrawals are made, the pass book should fee produced before the Bank for necessary entries. The first defendant wanted to withdraw the entire amount with interest without surrendering the savings bank account pass book.

In the meantime, the minor second defendant, who is the brother of the first defendant, issued a notice to the plaintiff informing the bank that there had been a partition in the family and that the amount to the credit of the first defendant with the bank had been allotted to his share and that the bank should not repay the amount to the first defendant. Since a dispute had arisen between the defendants inter se as regards the ownership of the amount, the plaintiff filed this interpleader suit.

3. The learned District Munsif disposed of the suit on the preliminary issue whether an interpleader suit was maintainable. He dismissed the suit on the ground that in regard to this deposit the relationship between the bank and the first defendant was that of principal and agent and that Order XXXV, rule 5 C. P. C., lays down that nothing in Order XXXV shall be deemed to enable agents to sue their principals. For this conclusion the learned District Munsif relied upon the decisions in New Field Co. by its sole proprietor K. L. Khuller v. James Voce Pirrie, Cyril Gill and Stanley Goodwin, 51 Mad LW 107 : (AIR 1940 Mad 139) (A); and Dharambal Animal v. James Voce Pierrie, Cyril Gill and John Stanley Goodwin, 50 Mad LW 939 : (AIR 1940 Mad 98) (B); and Santosh Kumar v. King, AIR 1952 Cal 193 (C).

4. But the bank preferred an appeal and the learned Subordinate Judge held that a perusal of the decisions cited above would show that the relationship between the bank and the depositor was that of a debtor and creditor respectively and not agent and principal. Therefore, he set aside the decree and judgment of the learned District Munsif and remanded the suit for disposal afresh on merits. The first defendant has preferred this appeal against the said order of remand.

5. In order to understand the relationship between a banker and customer, it is necessary to comprehend the legal meaning of these two terms. The term "banker" until the passing of the Indian Companies Amendment Act of 1936, had no statutory definition in India, and the legal decisions on its interpretations, were by no means harmonious. The term "customer" has never been defined in any statute and the Indian Judicial decisions on this point have not also been very helpful.

6. Tannan in his Banking Law and Practice in India, 7th Edn. at page 25, has well pointed out that much time, ink and paper have been consumed in an effort to define what exactly constitutes banking. Even the best authorities have found it rather a hard nut to crack, mostly on account of the multifarious functions and services, e.g., dealings in stocks and shares, etc., which modern banks perform, in addition to or in conjunction with what is distinctive and characteristic banking business.

7. Dr. H.L. Hart in his Law of Banking, Vol. I, 4th Edn. 1931, page 1 says :

"A banker is one who in the ordinary course of his business, honours cheques drawn upon by him by persons from and for whom he receives money on current accounts."

This definition is based upon the dicta given in a number of decisions, beginning with Foley v. Hill, (1948) 2 HLC 28 (D), Joachimson v. Swiss Bank Corporation, (1921) 3 KB 110 (E) etc. According to this d