Supreme Court of India · 1961-12-20
NEW BANK OF INDIA LTD. vs PEAREY LAL
- Citation / case number
- SC 1960/154
- Court
- Supreme Court of India
- Petitioner
- NEW BANK OF INDIA LTD.
- Respondent
- PEAREY LAL
- Author
- SINHA, BHUVNESHWAR P.(),KAPURL.,HIDAYATULLAH, M.,SHAHC.,MUDHOLKARR.
- Bench
- SINHA, BHUVNESHWAR P.(CJ),KAPUR, J.L.,HIDAYATULLAH, M.,SHAH, J.C.,MUDHOLKAR, J.R.
Judgment text excerpt
The Supreme Court held that when money is delivered to a bank with special instructions to await further directions, a trust is created, rebutting the presumption of a creditor-debtor relationship. The Court ruled that the money delivered by the respondent remained in trust with the bank and was not subject to the scheme for settlement of the bank's liabilities under Sections 153 and 153A of the Indian Companies Act, 1913. The appeal by the bank was dismissed, affirming the lower court's decree for the full amount sought by the respondent.