Banking Companies (Legal Practitioners' Clients' Account) Act, 1949
3.Restriction of liability of banking companies in certain cases.-
(1) Where, under any law or rules having the force of law, a legal practitioner keeping an account in banking company for clients,' moneys may only operate on such account for specified purposes, then, neither the banking company with which such an account is kept nor any other banking company shall, in connection with any transaction relating to such account, incur any liability, or be under nay obligation to make any enquiry, or be deemed to have nay
knowledge of any right of any person to any money paid or credited to such account, which it would not incur, or be under, or be deemed to have, in the case of an account kept by a person entitled absolutely to all the money paid or credited to the account :
Provided that nothing in this sub-section shall-
( i ) apply to the case of an account kept by a legal practitioner as trustee for a specified beneficiary, or
(ii) relieve a banking company form any liability or obligation which it would incur or be under, apart form this Act.
(2) Notwithstanding anything contained in sub-section (1), a banking company in which a legal practitioner keeps an account for clients' moneys shall not, in respect of any liability of such practitioner to the banking company, not being a liability in connection with that account, have or obtain any recourse or right, whether by way of set-off, counter-claim, charge or otherwise, against moneys standing to the credit of that account.