Broad reading of bank business activity brings rent-deposit claims within the statutory definition of debt.

Amounts entrusted to a defendant for deposit of rent and allied payments were treated as a "debt" under section 2(g) because the statutory definition covers liabilities due to a bank arising in the course of business activity. "Business activity" was read broadly to include functions necessary for carrying on banking operations, not only core lending or deposit transactions. Since arranging rent for office premises and staff accommodation supported the bank's efficient functioning, the claim arose from business activity and fell within the Act. The Tribunal's jurisdiction was therefore upheld and the defendant's challenge was dismissed.

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Issues: Whether the claim for recovery of amounts entrusted to the defendant for deposit of rent and allied payments constituted a "debt" within section 2(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Analysis: The definition of "debt" covers any liability, including interest, that is due to a bank in the course of any business activity undertaken under law. The expression "business activity" is wider than mere banking transactions and extends to activities necessary for carrying on banking business. Depositing rent for office premises and residential accommodation for staff was treated as part of the bank's business activity, because such accommodation was necessary for the efficient conduct of banking operations. The alleged payment to the defendant for depositing rent therefore arose from a business activity of the bank.

Conclusion: The claim fell within section 2(g) and was a debt for the purposes of the Act. The defendant's application challenging the Tribunal's jurisdiction was dismissed.

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