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M.C. Chacko v. State Bank of Travancore. 1970 AIR 500. [Section 25 (1) of Indian Contract Act, Privity Of Contract, Exceptions, Section 40] FACTS: H bank had an overdraft account with State Bank. MC Chacko was the manager of H bank and his father K had guaranteed the repayment of debt.
FACTS: K.C Chacko, father of the appellant, executed letters of guarantee in favor of the Kottayam Bank, agreeing to pay the amounts due by the High Land Bank under the overdraft arrangement. The last letter of guarantee, dated 22nd January, 1953, limited K.C Chacko's liability to Rs 20,000.
Two questions 'arise in this appeal: (1) whether under Ex. D-1 a charge is created in favour of the Kottayam Bank to satisfy the debt arising under the letter of guarantee and (2) whether the charge assuming that a charge arises-is enfforceable by the Bank when it was not a party to the deed Ex.D-1.
In M. C. Chacho v. State Bank of Travancore the Supreme Court was called upon to discuss the applicability of the doctrine of privity of contract. This paper makes an attempt to appraise the attitude of the court in this matter. The facts of the case were : - One Shri M. C. Chacko was the managing director of the High Land Bank, Kottayam. This ...
MC Chacko v. State Bank of Travancore - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
ISSUE: Whether a charge was created in favor of the bank to satisfy the debt arising under the letter of guarantee? And if such a charge existed, is it enforceable by the bank even though they were not a party to the contract. RULE: A beneficiary under a contract that creates a trust in his favor can sue upon a contract.
The Kottayam Bank Ltd. filed a suit in the court of the Subordinate Judge of Kottayam against the High Land Bank for a decree for the amount due in the account. To this suit were also impleaded K.C. Chacko the guarantor, M.C. Chacko Manager of the High Land Bank, and M.C. Joseph, Kuriakose Annamma and Chinnamma, the last three being the son ...
