Weerawago vs Bank of Madras – clr volume 2 page 011

In the case between a customer holding a current deposit account with the Bank of Madras (Plaintiff) and the Bank of Madras (Defendant), the court addressed the issue of whether a bank is entitled to debit a customer’s account based on a promissory note that is allegedly dishonoured, and if so, whether the necessary legal and procedural requirements, including the necessity of cheque demand and proper notice of dishonor, were fulfilled. It was held that a bank may, in principle, debit a customer on such grounds provided clear evidence of indorsement and proper notice is established; however, the burden of satisfactory proof lies with the bank. The court reaffirmed the principles concerning the evidentiary requirements under the Civil Procedure Code and the obligations of banks under ordina