A.N. Bhandari, C.J. - (1.) THIS appeal under clause 10 of the Letters Patent raises the Question whether a bank is entitled to appropriate the monies belonging to a firm constituted by a curtain set of partners for payment of an overdraft of another firm constituted by the same set of partners.
(2.) TWO partnership firms with identically the same partners, were carrying on business at Chichawatni, one under the name of Jaikishan Das -Jinda Ram and the other under that of Jaikishan Das -Hans Raj. On 25 -6 -1945 the firm Jaikishan Das -Jinda Ram (hereinafter referred to as firm No. 1) opened a cash -credit account with the Central Bank of India, Chichawatni, and on 30 -1 -1946 this account was closed. Firm Jaikishan Das -Hans Raj (hereinafter referred to as firm No. 2) had opened a similar account with the Bank and was indebted to the Bank to the extent of Rs. 26,000/ -. On 7 -8 -1947 firm No. 1 paid a sum of Rs. 15,000/ - to the Bank at Chichawatni for the purpose of being remitted to the Upper Doab Sugar Mills, Samli. The Mills declined to receive the money in question and the money was accordingly returned to the remitting office at Chichawatni. On 15 -9 -1948 the Bank credited this sum to the overdraft account of firm No. 2 and made a corresponding reduction in the amount of the debt due by firm No. 2 to the Bank.
(3.) ON 9 -12 -1952 firm No. 1 made an application under S. 13 of the Displaced Persons (Debts Adjustment) Act, 1951, claiming a sum of Rs. 15,000/ - from the Bank. The Bank resisted the claim by stating that the amount had been lawfully appropriated towards the debt due from the partners of firm No. 2 and consequently that in view of the provisions of S. 49 of the Act of 1951 the matter could not be reopened and re -agitated. The Tribunal constituted under the Act of 195l dismissing the application of firm No. 1 on the ground that the latter had no claim to the said money, and the order of the Tribunal was upheld by a learned Single Judge of this Court. Firm No. 1 has now preferred an appeal to this Court under clause 10 of the Letters Patent.;