Dishonour of Cheque -- Co-operative Bank -- Definition of 'Banker' -- Absence of RBI Licence -- Complaint Maintainable
Where a plea is raised that a co-operative bank does not fall within the definition of 'Banker' under S.3 of the Act on the ground that it is not licensed by the Reserve Bank of India, such plea is not sustainable -- The Supreme Court has held that the essence of banking lies in the acceptance of deposits from the public repayable on demand or otherwise, coupled with the facility of withdrawal by instruments such as cheques, drafts, or orders, and co-operative societies engaged in such activities are in substance performing banking functions -- Mere absence of a licence under S.22 of the Regulation Act does not detract from the character of the activity as banking business, nor can such absence be invoked as a defence to evade legal obligations arising therefrom -- Complaint is maintainable--Negotiable Instruments Act, 1881, S.138. (Paras 6 to 10)
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