S.H.SHETH - (1.)The plaintiff firm filed the present suit against the defendants to recover a sum of Rs. 5 0 on account of damages suffered by it. Indian Overseas Bank is the defendant. The plaintiffs case is that a cheque drawn by it on Indian Overseas Bank Geeta Mandir Branch Ahmedabad and payable to M/s. Mysore Commercial Union Limited was wrongly dishonoured on February 11 1970 The plaintiff also alleged that it had an overdraft facility with the Bank to the extent of Rs. 5000.00. The cheque in question which was dishonoured by the Bank was for a sum of Rs. 3 916 ps.
(2.)In defence it was contended by the Bank that the plaintiff had no overdraft facility and that the cheque was dishonoured because there was no sufficient cash balance in its account.
(3.)The learned trial Judge held that the plaintiff had overdraft facility with the Bank and that the Bank had wrongly dishonoured the cheque in question even though the cheque could be honoured within the limits of overdraft facility. He therefore passed in favour of the plaintiff a decree for damages and awarded to it a sum of Rs. 500.00.