Brij Mohan Lall, J. - (1.) This is a suit by the Official Liquidators of the U.P. Union Bank Limited to recover a sum of Rs. 2,677-5-8 from Messrs. Dinanath Raja Ram, a firm of cloth merchants, at Budaun. The bank being in liquidation, the suit has been instituted, by virtue of the provisions of Section 45-3 of the Banking Companies (Amendment) Act (20 of 1950), in this Court.
(2.) The defendant firm had a current account with the bank when it was a going concern. The defendant had overdrawn that account. The suit has been instituted to recover the amount of the overdrafts together with interest due to the bank from the defendant firm.
(3.) Two pleas have been put forward in defence. In the first place, it is contended that no interest is chargeable on the overdrafts. Secondly, it is contended that the bank had wrongly refused payment of a cheque for Rs. 1,500/- to the defendant firm and the amount of that cheque should be set off against the bank's claim.;