Ajay has availed of 3 loans from his bank amounting to ₹2 lakh, ₹3 lakh and ₹5 lakh carrying interest of 12%, 13% and 15% respectively. Further, the loan of ₹2 lakh has become time barred. Ajay pays ₹5 lakh without indic
CS Professional · Banking - Law and Practice · PYQS · December 2014
Ajay has availed of 3 loans from his bank amounting to ₹2 lakh, ₹3 lakh and ₹5 lakh carrying interest of 12%, 13% and 15% respectively. Further, the loan of ₹2 lakh has become time barred. Ajay pays ₹5 lakh without indicating the loan for which he has made payment. The bank appropriates the amount towards the first two loans. Ajay disputes this and explains that the amount was meant to pay-off the third loan where interest rate was highest. Explain the position of the banker.
Topics: Banker's Right of Appropriation
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