Article 22: (Art. 60 of the Act of 1908):
The period of limitation for a suit for money deposited under an agreement that it shall be payable on demand, including money of a customer in the hands of his banker so payable is three years and the time of limitation starts to run from the date when the demand is made.
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ADVERTISEMENTS:
The Art. 22 deals with a case of money deposited under an agreement that it shall be payable on demand. Article 22 is not restricted to deposit where the money is payable on demand from the very beginning but also applies to cases where the money is payable after a fixed period. Before the Article 22 is attracted the transaction must not only be a deposit but also there must be an agreement that it shall be payable on demand.
The Art. 22 is not restricted to claims against bankers. But where a person has placed himself in the position of a banker with reference to a particular person, a suit by the latter for recovery of money from that person will be deemed to be a suit by a customer for the money of the customer in the hand of the banker.
The Art. 22 deals with deposit of money, which does not include a deposit of things to be returned in specie.
ADVERTISEMENTS:
In Hrishikesh v. Kanthamani, (AIR 1959 Cal. 257), it is held that the Art. 22 is not attracted where the deposit was made for investing the sum in mortgage.
In Motigavri v. Naranji, (AIR 1927 Bom. 362), it is held that an overdraft in the hands of a banker is a loan and not money deposited with the banker. So, Art. 22 would not apply to a banker suing his customer on an overdraft.
It is not sufficient for the application of Section 22 that there should be a deposit; but it is also necessary to show that the deposit was under an agreement.
In Kashinath v. N A С G & P Co., (AIR 1951 Nag. 255), it has been held that money payable under a fixed deposit in a Bank is not money payable on demand; it is money payable upon the expiry of the fixed period of deposit, and consequently not governed by Art. 22.
ADVERTISEMENTS:
Under Art. 22 right to sue will not arise until there has been a demand and a refusal. The cause of action in the case of the deposits under Art. 22 arises when the demand for the return of the deposit is made.