People’s Bank v Mannuel Enterprises (Pvt) Ltd. – sllr 2004 volume 3 page 247

In the case between People’s Bank and Mannuel Enterprises (Pvt) Ltd., the court addressed whether a bank can exercise its right of set off by deducting funds from an account other than one expressly specified for such purpose, and whether part payment by a debtor can prevent an action from being barred by prescription. It was held that the express agreement between the parties limited the bank to debit only the designated current account for loan repayments, rendering deductions from other accounts invalid. The decision reaffirmed the principle that contractual terms restricting the right of set off must be given effect and that statutory prescription is not interrupted by acts falling short of explicit part payment. Reliance was placed on the relevant provisions of the Prescription Ordina