KARAK RUBBER COMPANY LTD. v. BURDEN SAME v. CROSS SAME v. MINORIES TRADING & SECURITIES LTD. SAME v. BARCLAYS BANK LTD. SAME v. STANLEY STEWART LTD. SAME v. TRUSTEE OF THE PROPERTY OF BURDEN

[1972] 1 Lloyd's Rep. 73

CHANCERY DIVISION

Before Mr. Justice Brightman

Banking - Paying bank - Duty of care - Account opened by company - Cheque drawn on account by directors without authority - Whether bank put on inquiry - Whether bank was constructive trustee of money paid into account without authority. Trustee - Constructive trust - Cheque paid into company's account with bank by directors without authority - Whether knowledge of directors' fraudulent design imputed to bank - Whether bank was constructive trustee. Company - Directors - Breach of duty.