Delivery of the amount for transmission to the bank created ex facie a relationship of a fiduciary character: New Bank of India v/s Pearey Lal (1962).

CaseNew Bank of India Ltd. v Pearey Lal, AIR 1962 SC 1003
CourtBefore the Supreme Court of India
Case NoCivil Appeal No 398 of 1960
BenchChief Justice Bhuvaneshwar Prasad Sinha, Justice JL Kapur, justice M Hidayatullah, Justice JC Shah and Justice JR Mudholkar
Author of the judgementJustice JC Shah
Decided OnDecember 20, 1961
Advocates for the appellantVeda Vyasa, Senior Advocate ( SK Kapur and BP Maheshwari, Advocates, with him)
Advocate for the respondentKL Gosain, Senior Advocaate (KL Mehta, Advocate, with him)
Author of the briefAditya Gor
KeywordsBanking, Trustee, Fiduciary Relations, Debtor-Creditor Relations.

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R.C. Cooper v Union of India(1970): Nationalisation of banks impaired the right to compensation under Article 31(2) of the Constitution of India and consequently was struck down.

CaseRustom Cavasjee Cooper v. Union of India along with T.M.Gurubuxani v. Union of India, AIR 1970 SC 564
CourtBefore Supreme Court of India
BenchA.N.Grover, A.N.Ray, C.A. Vaidialingam, G.K.Mitter, I.D.Dua, J.C.Shah, J.M.Shelat, K.S.Hegde, P. Jagmohan Reddy, S.M. Sikri and Vashishtha Bhargava, JJ.
Author of the judgementJ.C. Shah, A.N.Ray, JJ.
Decided On10.02.1970
Advocate for the petitionersNani Palkhivala, M.C.Chagla, A.J.Raja, N.N.Palkhivala and R.N.Bannerjee.
Advocate for the respondentsNiren De, Attorney General, Jagdish Swarup, Solicitor General, M.C.Setalvad, C.K.Daphtary, and R.H.Dhebar.
Abstract

This is a landmark judgment of 11 judges where the Constitutional Validity of bank nationalisation by the Indira Gandhi Government was challenged. While declaring the nationalisation to be invalid, SC by a majority of 10:1 observed that the nationalisation of banks impaired the right to compensation under Article 31(2) of the Constitution of India and consequently was struck down primarily on the ground of violation of Article 31(2). However, A.N.Ray, while writing a dissenting judgment upheld the validity of Nationalisation.

Author of the briefDarshan Patankar
KeywordsBanking Law, Privatisation, Ordinance, Constitution of India, Constitutional validity, Legislative Competence, Freedom of Trade.

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