Foley v. Hill
(1848) 2 HLC 28 · House of Lords
Money deposited with a banker becomes the banker's money; the relationship is debtor and creditor, not trustee and cestui que trust.
Unit II · Law of Banking and Negotiable Instruments
Nature of the relationship: debtor–creditor, agency and lien
Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.
Statute sections
| Act / instrument | Section | Name |
|---|---|---|
| Banking Regulation Act, 1949 | 5(b) | Meaning of banking (accepting deposits for lending or investment) |
| Negotiable Instruments Act, 1881 | 5–6 | Bill of exchange and cheque |
| Constitution of India | 19(1)(g) | Occupation of banking as a trade subject to regulation |
Landmark cases
Tournier v. National Provincial and Union Bank of England
[1924] 1 KB 461 · Court of Appeal (England)
A banker owes a qualified duty of secrecy, displaced by compulsion of law, public duty, bank's interest, or customer consent.
Shanti Prasad Jain v. Director of Enforcement
AIR 1962 SC 1764 · Supreme Court of India
Foreign-exchange and banking controls can qualify the ordinary banker–customer relation without converting the bank into a trustee of every deposit.