A joint stock banking Company carried on business, by means of branches, at various places; amongst others, at G. and B. The Company was one; but each branch kept separate accounts, had separate customers, and in all respects transacted business like a separate bank. Defendant, holder of a cheque drawn on the G branch, by a person who kept an account there, got cash for it at. The B branch. The cheque was without laches forwarded by the B branch to the G branch. When it was cashed the balance in the G branch to the credit of the drawer exceeded the amount of the cheque; but when it arrived at G that balance had been paid away, and the cheque was dishonoured. The Company having sued for money had and received, on the ground of failure of consideration.
Held: that they were entitled to recover; as the B. branch could not, under the circumstances, be considered as honouring the cheque, nor as purchasing it, but as taking it from defendant on his credit, as they might have done a cheque drawn on any other bank. The circumstance that the banks at G. and B were branches of the same Company being, for this purpose, immaterial.
Citations:
[1857] EngR 84, (1857) 7 El and Bl 519, (1857) 119 ER 1339
Links:
Jurisdiction:
England and Wales
Banking
Updated: 24 July 2022; Ref: scu.289830