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Ladbroke and Co Vs Todd

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HomeBrud.gifBanking LawBrud.gifLadbroke 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.

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