Canara Bank Overseas Branch Vs Archean Industries Private Limited And Another (Supreme Court of India)
Supreme Court held that Bank couldn’t act contrary to mandate given by customer since funds belonged to the customer. Thus, act of Bank in transferring the funds to the owner of the vessel cannot be sustained.
Facts- The present Civil Appeals arise out of the common judgment and decree dated 16.08.2021 passed by the High Court of Judicature at Madras’ in O.S.A. No. 423 of 2012, whereby the Division Bench of the High Court allowed the appeal to the limited extent of decreeing the claim of Defendant No. 1 against Defendant No. 2 under the third-party procedure as prayed for, while affirming the judgment and decree dated 18.11.2010 passed by Single Judge of the High Court.
The aforesaid Civil Suit was instituted by the plaintiff – Goltens Dubai seeking a judgment and decree against Defendant Nos. 1 and 2 , Archean Industries Private Limited and Canara Bank, Overseas Branch, Chennai jointly and severally, for a sum of Rs. 48,26,750/- together with interest at the rate of 21% per annum on Rs. 43,00,000/- from the date of the plaint till realisation along with costs. By judgment and decree dated 18.11.2010, the Single Judge decreed the suit as prayed for only against Defendant No. 1 while dismissing the suit insofar as Defendant No. 2 is concerned, without costs.
