AB RASHID Vs. J&K BANK LTD
HIGH COURT OF JAMMU AND KASHMIR
JANDK BANK LTD
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R.C.GANDHI, J. -
(1.) THIS Letters Patent Appeal has arisen out of the judgment and order dated July 22, 1998, passed in OWP No. 377/95 whereby the petition
of the appellant has been dismissed.
(2.) THE appellant, a Field Officer in the Agriculture Department, retired from service on January 31, 1997. An amount of Rs. 1,08,227/ - was
released as post -retiral benefits by the employer which included gratuity
and commuted pension. The money was payable to the appellant by Sub
Treasury, Chenani, to be encashed from the Jammu & Kashmir Bank Ltd,
Chenani. The appellant approached the said treasury and also went to the
cash counter of the Bank at Chenani in order to collect the amount as the
treasury was operating cash through the aforesaid bank. The Cashier of
the bank however, informed the appellant by letter dated, April 21, 1997,
"It is for your kind information that your above mentioned
treasury bill presented for payment in the Bank has been credited in the
decretal amount of Sh.Abdul Rashid Dar as you are the guarantor in the
The appellant challenged the right of the bank before the writ
court to adjust money against the decree on the ground that neither he
was a surety nor guarantor of Abdul Rashid Dar against whom the decree
had been passed and action of the respondent -bank was, therefore
arbitrary, without the authority of law and also without any notice to
the appellant. The stand of the respondents before the writ court was
that the writ petition was not maintainable against the bank being not an
instrumentality of the State and the respondent -bank being a
decree -holder was well within its right to adjust the amount against the
decree passed by the court. The learned Single Judge disposed of the writ
petition holding that the bank has a general lien over all forms of
deposits or securities made by or on behalf of the customer in the
ordinary course of banking business and thus the bank has not committed
any illegality. The petition was also held to be not maintainable because
the operation of the judgment of this court delivered in Firdous Ahmad
Tanki v. Jammu & Kashmir Bank Ltd. and others (1996 KLJ 21) wherein a
Full Bench of this court has held that the Jammu & Kashmir Bank is an
instrumentality of the State and amenable to writ jurisdiction of the
court, taking a contrary view, has been stayed by the Supreme Court in
Civil Appeal No: 1874 of 1997.
(3.) THE appeal is admitted and taken up for hearing on the joint request of learned counsel for the parties.
We have heard learned counsel for the parties, gone through the memorandum of appeal, order under appeal and other evidence on record.;
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