Sunday, 26 December 2021

Is the relationship between the customer and Bank a creditor and a debtor?

 The money that a customer deposits in a bank is not held by the latter on trust for him. It becomes a part of the banker’s funds who is under a contractual obligation to pay the sum deposited by a customer to him on demand with the agreed rate of interest. Such a relationship between the customer and the Bank is one of a creditor and a debtor. The Bank is liable to pay money back to the customers when called upon, but until it’s called upon to pay it, the Bank is entitled to utilize the money in any manner for earning profit.

Supreme Court

CHIEF JUSTICE OF INDIA N.V. RAMANA JUSTICE SURYA KANT JUSTICE HIMA KOHLI

N. Raghavender Vs. State of Andhra Pradesh, CBI

CRIMINAL APPEAL NO. 5 OF 2010

13th December 2021

Author: Surya Kant, J.

Citation: 2021 ALL SCR (ONLINE) 761

Read full Judgment here: Click here

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