https://www.taxtmi.com/caselaws?id=109552 The true character of a banking arrangement depends on its substance and agreed purpose, not on the label given to the account. A deposit maintained under a specific financing arrangement for share capital subscription was treated as a share deposit, not an ordinary savings bank account, so denial of interest based on RBI circulars was misconceived. The bank's appropriation was held unlawful, and restitution was available on principles reflected in sections 65 and 70 of the Contract Act. The society was entitled to recover the amount with interest, and the suit was decreed with costs and interest at 9% per annum from the date of suit until payment. en-us Fri, 04 Apr 2003 00:00:00 +0530 Tue, 10 Apr 2012 17:32:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109552 The true character of a banking arrangement depends on its substance and agreed purpose, not on the label given to the account. A deposit maintained under a specific financing arrangement for share capital subscription was treated as a share deposit, not an ordinary savings bank account, so denial of interest based on RBI circulars was misconceived. The bank's appropriation was held unlawful, and restitution was available on principles reflected in sections 65 and 70 of the Contract Act. The society was entitled to recover the amount with interest, and the suit was decreed with costs and interest at 9% per annum from the date of suit until payment. Case-Laws Companies Law Fri, 04 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109552