INDIAN BANK Vs. CATHOLIC SYRIAN BANK LTD

JUDGEMENT

(1.) This appeal has been preferred by the defendant in O.S.No. 517 of 1969, on the file of the Court cd the Subordinate Judge, Salem, while the memorandam, of cress objections has been filed by Lue plaintiff therein.I The suit, out of which this appeal has arisen, was instituted by the respondent for recovery of a sum of Rs. 29,000, wroney paid over to the appellant in discharge of a forged demand draft presented for conversion by it on behalf of an alleged customer of it.

(2.) The learned Subordinate Judge sustained the case of the respondent but, however, found contributory negligence in the respondent as well and hence he disallowed a sum of Rs. 4,000 and decreed the suit for the balance of Rs25000. The appeal is directed against the decree for Rs. 25,000, while the memorandum of cross objections is directed against the disallowance of a sum of Rs. 4000.

(3.) The respondent's suit came to be filed in the following circumstances: On 6-61969 one Shanthilal Manilal Desai (hereinafter referred to as S. M. Desai) opened a current account with the Indian Bank Ltd., Main Office, Salem (hereinafter referred to as, the appellant bank). On 12-6-1969, me Mohamed Hussain obtained a demand, draft for Rs. 20 from the branch at Singanallur of the Catholic Syrian Bank (hereinafter referred to as the respondent Bank). The draft was drawn on the branch office of the same bank at Cochin in favour of Messrs. Desai and Co. This draft was, however, altered by means of clever forgery to make it appear that it was a draft for Rs. 29,000, drawn on the Salem branch of the respondent bank in favour of S. M. Desai. The forged draft was presented at the main office, at Salem, of the appellant bank on 11-61949, by the above named S. M. Desai, for being credited to his account.