- (1.) This application in revision is directed against an order of a Full Bench of the Calcutta Court of Small Causes dated September 7, 1954, dismissing the Petitioner's application for a new trial under Section 38 of the Presidency Small Cause Courts Act.
(2.) The facts briefly are that the Plaintiff-opposite party, United Bank of India Limited, brought a suit against the Defendant for recovery of a balance of Rs. 537-10as.-8p. found due from the Defendant-Petitioner in respect of an overdraft account which the Defendant-Petitioner had with the Bank.
(3.) In March, 1949, the Petitioner was granted privilege of overdraft on his account and the limit of accommodation was later on increased to a sum of Its. 4,000 on condition that the Defendant agreed to pay to the Bank the sum due on the account with interest at 6 per cent, per annum at monthly rests. A further condition attached was that the Defendant would furnish some security. This condition was fulfilled by the Defendant-Petitioner by assigning in favour of the Bank a life insurance policy issued by the East Insurance Company Limited. This policy was accepted as security for due payment of the overdraft account. If the Defendant-Petitioner failed to repay, the Plaintiff Bank in pursuance of their right to surrender the policy, could appropriate proceeds of such surrender towards the liquidation of the debt. In addition to this, a promissory note was executed in favour of the Bank and a letter of continuity incorporating the terms and conditions of the accomodation was given. A certain sum of money having fallen due the opposite party upon due notice to the Petitioner, surrendered the policy and obtained the surrender value which was appropriated towards liquidation of the debt which the Petitioner owed to the Bank in respect of the overdraft account. After adjustment a sum of Its. 537-10as.-8p. was still found due and owing to the Bank ; for realisation of which the suit was instituted in the Court of Small Causes at Calcutta.;