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TMI Blog1919 (11) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ts here are Haridas Ranchordas and Ludha Dossa. 2. The defendants, under the name of Dharamsay Jaitha Co. carried on business at Bombay as cotton merchants, their bank era were the plaintiff Bank, and the suit wan brought by the Bank to recover from them a balance due by the defendants to the Bank and interest on that balance. The defendant, 1-Haridast Ranchordas and Ludha Dossa tiled a written statement and counter-claim in which they claimed an account, and damages for the dishonour on the 1st August, 1914', by the Bank of two cheques drawn by their firm upon the Bank'. Their Lordships are informed by counsel that by the Rules of the High Court at Bombay relating to suits in its original civil jurisdiction counter-claims are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bank on the 1st December, 1913, and so far as it is material it was as follows:- In consideration of your allowing us an overdraft to the extent of, but not exceeding at any one time, Us. 10 lacs in current account it is hereby agreed that all moneys advanced and hereafter to be advanoed in pursuance of these presents (hereinafter referred to as the 'said overdraft' or ' such overdraft') shall be advanced upon the terms and conditions hereinafter mentioned :- 1. The said overdraft shall he repayable within twelve months from this date and 'or at your option on demand being made therefor. 2. Interest shall he charged at 7 per cent, per annum and shall Ma ealnutated on the daily balance due to you in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter shall be open to our inspection at any time during the usual business hours : no cotton shall be removed from the said godowns and or Jetbas except on a delivery order or orders signed by you. 5. Whatever may be the strict construction of clause 2 of that, letter the Bank invariably struck a balance of its customers accounts on the last day of each month and charged interest on the amount of that balance. The interest so charged was added to the monthly balance and the resultant balance, which included the interest, was carried forward to the debit of the customer as the balance due on the 1st of the following month. 1 he passbook of tide defendants with the Bank shows clearly that that was the way in which interest was computed and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest. The High Court in the appeal taking the same view of the facts as the trial Judge confirmed that decree, and their Lordships agreeing with the findings of the Courts below on the question of interest are of opinion that the decree of the High Court should be affirmed. 7. The counter-claim relates to the dishonour by the Bank on the 1st August, 1914, of two cheques drawn by the defendants upon the Bank and presented for payment on that day. On the 1st August, 1914, the overdraft of the defendants' firm amounted to the 5,81,4 )!.. On the 31st July, 1914, the Bank issued a notice to the defendants' firm that the Bank was not advsmeiug further ngains, cotton and would be obliged by the defendants reducing the present adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is to be observed that the Bank could at any time have demanded repayment of the whole overdraft. It is proved that after the 1st August, 1914 the Bombay cotton market got gradually worse, and that there were very few purchasers of cotton at Bombay during August, 1!)14, am! only in small lots in August 1914 there was a large stock of about 500.000 bales of unsold cotton in Bombay. The trial Judge by his decree rightly dismissed the counter-claim and the High Court in appeal confirmed that decree. 8. Before concluding this judgment their Lordships think it right to say that they see no reason for questioning the propriety of action of the. solicitor for the defendants in the suit. Their Lordships will humbly advise His Majesty that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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