When a Commercial Bank accepts Deposit from Customer, Bank becomes Debtor and Customer becomes Creditor. Bank is free to use borrowed money as it likes. But, when Customer takes a Loan from Commercial Bank, the Loan is generally sanctioned for a specific purpose,for example, purchase of property,education etc. Customer is not entitled to use Loan amount for any other purpose.
Through a Loan, Bank is giving it's property to the Customer with a specific purpose, for the benefit of both Bank and Customer.
Could then it be argued that relationship between Bank and Borrower is a Trust Relationship under Indian Trust Act, and not a simple Creditor - Debtor relationship ?
