The reference to ‘any wrongful act or omission’ in section 10 is not limited to torts or even to wrongs which were actionable at common law. ‘In paying or collecting money for a customer the bank acts only as his agent. It is otherwise, however, if the collecting bank uses the money to reduce or discharge the customer’s overdraft. In doing so, it receives the money for its own benefit.’ Secrecy is a badge of fraud.
Judges:
Millett J
Citations:
[1990] 1 Ch 265, [1991] 3 WLR 11
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Islamic Republic of Pakistan v Zardari and others ComC 6-Oct-2006
The claimant alleged that the defendants had funded the purchase of various properties by secret and unlawful commissions taken by them whilst in power in Pakistan. They sought to recover the proceeds. They now sought permission to serve proceedings . .
Cited – Clark v Cutland CA 18-Jun-2003
One director discovered that his co-director had withdrawn substantial sums from the company. . .
Lists of cited by and citing cases may be incomplete.
Company, Banking
Updated: 27 June 2022; Ref: scu.219200