Canbank Financial Services Ltd. Vs. Citibank N.A.
EmailAppeal: Civil Appeal No. 9063 of 1996
Petitioner: Canbank Financial Services Ltd.
Respondent: Citibank N.A.
Apeal: Civil Appeal No. 9063 of 1996
Judges:
Date of Judgment: Jul 07, 2004
Head Note:
Contract Act, 1872
Sections 41,62,63 – Applicability – Issuance of BR – Accepted in lieu of previous BR – Previous BR handed over to the drawer of fresh BR – If Section 41 applies and promisee would have double satisfaction. Held that Section 41 was not applicable.
Sections 41,62,63 – Applicability – Issuance of BR – Accepted in lieu of previous BR – Previous BR handed over to the drawer of fresh BR – If Section 41 applies and promisee would have double satisfaction. Held that Section 41 was not applicable.
Held:
Section 41 of the Indian Contract Act only provides that the promisee cannot have double satisfaction of its claim i.e. from the promisor as well as a third party. It does not give a cause of action to the promisee, but, to the promisor, to contend that the promisee who has accepted satisfaction from the third party cannot insist on the satisfaction of its claim from the promisor as well. The case of the Citibank squarely falls under section 63 of the Indian Contract Act, (Para 46)
Ed. : In this case also, suit by SCB against Citibank was dismissed along with suit against CANFINA. Both were held entitled to restitution of amount paid by them with interest.
JUDGEMENT:
