Showing posts with label Contract Act-1872. Show all posts
Showing posts with label Contract Act-1872. Show all posts

DEFINITION OF A CUSTOMER IN THE COMMERCIAL BANK


The term 'customer' of a bank is not defined by law. Ordinarily, a person who has an account in a bank is considered its customer. Banking experts and the legal judgements in the past, however, used to qualify this statement by laying emphasis on the period for which such account had actually been maintained with the bank. In Sir John Paget's view "to constitute a customer there must be some recognisable course or habit of dealing in the nature of regular banking business." This definition of a customer of a bank lays emphasis on the duration of the dealings between the banker and the customer and is, therefore, called the 'duration theory'. Accord- ing to this viewpoint a person does not become a customer of the banker on the opening of an account, he must have been accustomed to deal with the banker before he is designated as a customer.


The above-mentioned emphasis on the duration of the bank account is now discarded. According to Dr. Hart, "a customer is one who has an account with a banker or for whom a banker habitually undertakes to act as such." 

"Broadly speaking, a customer is a person who has the habit of resorting to the same place or person to do business. So far as banking transactions are concerned he is a person whose money has been accepted on the footing that the banker will honour up to the amount standing to his credit, irrespective of his connection being of short or long standing."

Different Act with Year & Amendment


Contract Act-1872

Majority Act-1875

Negotiable Instrument Act-1881

Transfer of Property Act-1882

The Bankers Book evidence Act-1891

Income Tax Ordinance-1984

Stamp Act-1899

The Registration Act—1908

The Limitation Act-1908

The Public demand recovery Act-1913

Partnership Act-1932

The Foreign Exchange Regulation Act-1947, Amendment-2015

The Bank Company Act-1991

The Company Act-1994

The Bankruptcy Act-1997

Money Loan Court Act-2003

The Insolvency Act-1997

Information and Communication Technology Act-2006

Anti-Terrorism Act-2009, Amendment-Twice-2012 & 2013

Money Laundering prevention Act-2012, Amendment-2015

Master Circular-10- December 28, 2014