Kachara and Bros v Official Receiver and Liquidator of the Exchange Bank of India and Africa Limited
Kachara and Bros v Official Receiver and Liquidator of the Exchange Bank of India and Africa Limited (Civil Appeal No. 69 of 1950) [1951] EACA 33 (1 January 1951)
The Court held that the appropriation of a portion of the appellant's account as a percentage margin was a condition imposed by the bank for granting letters of credit, not a specific appropriation pursuant to instructions from the appellant. The funds remained part of the general account and were not held in trust or as agent for the appellant. The bank's separate accounting for the margin deposits did not alter the debtor-creditor relationship. Therefore, the appellant's claim for the marginal deposits ranks equally with other creditors in the liquidation and is not entitled to preference.…
Source excerpt
- Bank Customer Relationship
- Letters Of Credit
- Liquidation Priority
- Trust Vs Debt
- Fiduciary Duties
- Marginal Deposits