1940 (8) TMI 23

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.... Aiyar, King and Partridge for the Respondent. JUDGMENT Leach, CJ. - The appellant is a company registered under the Indian Companies Act and carried on a barking business at Palghat in Malabar. The appellant required certain employees to deposit sums of money with it as security for the due fulfilment of their duties. Section 282-B (1) of the Indian Companies Act states that all monies or s....

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....rom an employee. On the 15th of January 1938 and on the 21st of February 1938 it deposited with the bank Rs. 5,000 and Rs. 500 respectively, these sums also representing security received from employees. These monies were credited to the appellant in an account headed "employees cash security." They were, of course, deposited with the bank as the result of the statutory obligation imposed upon the....

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....pecies of trust and is subject to the same principle as trust property Vol. 2, page 228 (Hailsham edition). The learned Judge rejected this contention. He recognised that in such a case as the present one the depositor is the trustee and the money deposited is trust money, but he held that this does not affect the relation which the law creates between a bank and an ordinary customer, namely, the ....