Decided on April 02,1999

Ab Rashid Appellant
JANDK BANK LTD Respondents


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, that "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 above account..." 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.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.