Ladbroke and Co Vs Todd
(30 TLR) 1914 (433)
Judgement / Held That
- Relationship between banker and customer begins as soon as a cheque is paid in and accepted for collection and not merely it is paid
Facts of the case
- A thief opened an account with the bank.
- As a first transaction, he handed to the bank for collection, a cheque which he has stolen.
- The question before the court now is whether the thief was a customer of the bank.
- It was contended that as the banker-customer relationship could only be established over a period of time and that the thief was not a customer.
- A person need not have a series of dealings with the bank before he acquires the status of a customer.
- A person becomes a customer the moment the bank received money or cheque and agreed to open an account for him.