CHANAKYA AND CO Vs. KAY AAR DECOBUILD PVT LTD
LAWS(DLH)-2007-5-229
HIGH COURT OF DELHI
Decided on May 28,2007

CHANAKYA AND CO.,B.L. MALHOTRA Appellant
VERSUS
KAY AAR DECOBUILD PVT. LTD Respondents

JUDGEMENT

J.M.MALIK, J. - (1.) Arguments heard. This is an indisputable fact that the appellant had to pay an amount of Rs.25,000/- to the respondent. The appellant tried to pay back that money through a bank draft issued by Parishad Cooperative Bank which subsequently went into liquidation. The money therefore could not be paid to the respondent. Counsel for the appellant has drafted the following substantial question of law:- "1. Whether the appellant who paid the dues through bank draft to the respondent is again liable to pay in case, if the payment is denied by the Banker of the Appellant."
(2.) Counsel for the appellant pointed out that the appellant had got the directions from the respondent to pay the amount by the above said bank but he has failed to adduce evidence in this respect. He has drawn my attention towards illustration (a) appended to Section 50 of the Indian Contract Act which runs as follows: Section 50: Performance in manner or at time prescribed or sanctioned by promisee. - The performance of any promise may be made in any manner, or at any time which the promisee prescribes or sanctions. Illustration (a) B owes A 2,000 rupees. A desires B to pay the amount to A's account with C, a banker. B, who also banks with C, orders the amount to be transferred from his account to A's credit, and this is done by C. Afterwards, and before A knows of the transfer, C fails. There has been a good payment by B."
(3.) A perusal of the illustration (a) goes to show that it is specifically stated "as desired" by the appellant. There is no material on record which may go to show that the respondent had desired that the bank draft be issued through Parishad Cooperative Bank only. If the bank has gone into liquidation, respondent cannot be held responsible for the same nor it can be assumed that the money stands paid to the respondent.;


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