VIJAYA BANK BANGALORE Vs. NEDUNGADI BANK LIMITED BANGALORE

JUDGEMENT

(1.) this first appeal is presented by vijaya bank, a nationalised bank, which was one of the defendants in the suit. The suit was instituted by the nedungadi bank for recovery of a sum of Rs. 12,675/- - Rs. 9,700/- towards wrongful payment of the amount under a forged draft on 29-8-1978 to the second respondent (first defendant) and a sum of Rs. 2,975/- towards interest thereon at 6% per annum from 29-8-1978 till the institution of the suit.

(2.) the parlies are referred to hereinafter by their respective positions in thetrial court.

(3.) the facts leading to the institution of the suit by the plaintiff are as follows: the first defendant opened an account on 10-8-1978 with the third defendant-bank which is a branch of the fourth defendant. At the time of opening of the account he deposited an amount of Rs. 100/. On 29-8-1978 the first defendant deposited a demand draft for Rs. 9,.700/- to his account for collection by the third defendant-bank. The draft was dated 28-8-1978 drawn in favour of the first defendant. The said draft purported to have been issued by the tiruppur branch of the plaintiff-bank. The said draft was sent by the third defendant-bank through the clearing house for realisation. The plaintiff-bank on whom the draft had been drawn made payment and the amount realised therefrom was credited to the first defendant. The first defendant withdrew the amount on 31-8-1978 from his account.