Commissioners of the State Savings Bank of Victoria v Permewan, Wright and Company Limited [1914] HCA 83

Honk (88 BASKING

19 C.L.R.] OF AUSTRALIA. 457

(HIGH COURT OF AUSTRALIA.]

THE COMMISSIONERS OF THE STATE 'Apeuatiaivrs : SAVINGS BANK OF VICTORIA ' DEFENDANTS,

AND

PERMEWAN, WRIGHT & COMPANY RESPONDENTS. LIMITED 'i 7

PLAINTIFFS,

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

Banker—Business of banking—State savings bank—Collection and payment of H.C. or A. cheques—Liability of banker for conversion—Receipt of payment of cheque 1914, without negligence—Bills of Hachange Act 1909 (No. 27 of 1909), secs. 4, 87, 9 Gr 88—Instruments Act 1890 (Vict.) (No. 1103), secs. 82, 83—Savings Banks Act MeLBourNe, 1890 (Vict.) (No. 1138), secs. 7, 11, 17, 41—Savings Banks Act 1890 Amendment Oct. 2, 5, 6, 8, Act 1896 (Vict.) (No. 1481), secs, 25, 29—Savings Banks Act 1901 ( Vict.) (No. 9 12, 13, 14. 1778), sec. 2.

SypNey, 'The essential characteristics of the business of banking are the collection of Dec. 18. money by receiving deposits upon loan, repayable when and as expressly

Griffith ©.5.,

or impliedly agreed upon, and the utilization of the money so collected by "Isaacs, lending it again in such sums as are required. In order to bring a banker Svan Duffy,

within the provisions of the Bills of xchange Act 1909 and the Instruments Rich 33. Act 1890 (Vict.) it is not necessary that he should as part of his business collect cheques for his customers and pay their cheques.

So held by Isaacs, Gavan Dufy, Powers and Rich JJ. (Gi dissenting).

h Od.

Held, therefore, that the Commissioners of the State Savings Bank of Vic- toria whose real and substantial business was of that nature are bankers within the meaning of sec, 88 of the Bills of Hxchange Act 1909 and sec. 83 of the Instruments Act 1890 (Vict.), notwithstanding that under the Savings Banks Act 1901 repayments of deposits were only permitted on production of the depositor's pass-book with his order for payment.