V.P.TYAGI, J. - (1.) THIS is a State appeal against the judgment and decree of the Additional District Judge, Jhalawar, dated March 20, 1973. whereby a suit filed by the State for the realisation of Rs. 5,200/ - from the Bank of Rajasthan Ltd. Jhalawar. against firm Nand Ram Shankar Lal of Jhalawar, was dismissed by the trial court.
(2.) FACTS giving rise to this litigation are in nutshell, as follows: Defendant No. 2 firm Nand Ram Shanker Lal was appointed in the year 1950 -51 as a importer for cloth by the Civil Supplies Department of the State of Rajasthan for importing cloth to be sold in the District of Jhalawar. It is alleged that the firm was required to furnish a security for Rs. 5 000/ -. According to the plaintiff's case the defendant firm M/S Nand Ram Shinker Lal deposited an amount of Rs. 5,000/ - in the Jhalawar State Bank and the said Bank stood as a surety to guarantee to payment to tae State to the extent of Rs. 5,000/ - vide letter of the Bank dated 26 5 50. The Jhalawar State Bank then became defunct and its assets including the deposit of Rs. 5,000/ - from the firm were taken over by the defendant No. 1 the Bank of Rajasthan, Jhalawar Branch. From the averments made in the pleadings of the parties it appear that till 1958 this amount remained deposited with the defendant Bank. The defendant firm demanded a refund of this amount from the Bank and it appears that the Bank refunded Rs. 5,200/ - (Rs. 200/ - as interest) on December 22, 1958. The State Government, it is said, demanded an amount of Rs. 13,028/6/6 from the defendant -firm and it was in that connection enquiries were ma ii by the State Government vide its letter No. 7273 dated 1 -4 -67 about the security money deposited with the Jhalawar State Bank. A reminder dated 21 -7 -67 was also sent by the State about the said deposit and it was discovered that the Bank of Rajasthan, Jhalawar Branch refunded that amount with interest (Rs. 200) to he defendant firm. On this enquiry the defendant Bank vide its letter No. 19/R/1589/67 dated 3 -8 -67 also informed the State Government that the deposit of Rs. 5,000/ - was refunded to the depositor, but the release order was not traceable in tine Bank The State demanded from the defendant Bank the payment of Rs. 5,200/ -, as it was the money deposited with the Bank as security money for the due discharge of the function of the import agent for Jhalawar District. By its letter dated 13 -11 -67 the Bank refused to make payment to the plaintiff State. It was in these circumstances that a suit was filed by the State Government for the realisation of Rs. 5,200/ - and in that suit both the Bank of Rajasthan as well as firm Nand Ram Shanker Lal, were impleaded as defendants No. 1 and 2.
(3.) BOTH the defendants denied their liabilities to pay Rs. 5,200/ - to the State Government. Defendant No. 2, however, pleaded that no amount is due to the State Government and it was not entitled to demand the refund of the security money to it.;