Indian Overseas Bank v. Ramadas & Others – sllr 2000 volume 3 page 322

In the case between Indian Overseas Bank (Plaintiff) and Ramadas & Others (Defendants), the court addressed whether the prescriptive period on an overdraft account begins from the date each sum is withdrawn or only after a demand for repayment is made. It was held that prescription on such an account accrues from the date each sum is withdrawn, reaffirming the principle that in the absence of an express written agreement to the contrary, a debt under an overdraft becomes due when funds are drawn, not upon subsequent demand. The decision relied on established precedents including Parrs Banking Company Ltd. v. Yates, Wright v. New Zealand Farmers Co-operative Association, and Joachimson v. Swiss Bank Corporation, emphasizing that the limitation period runs from the occurrence of each overdra