GOVINDARAJ AND CO Vs. NEDUNGADI BANK LTD

JUDGEMENT

(1.) The first and second defendants are the appellants herein.

(2.) This appeal has arisen from the judgment and decree of the learned Subordinate Judge, Coimbatore granting a decree in favour of the first respondent/plaintiff.

(3.) The case of the plaintiff as set out in the plaint is as follows: The first defendant is a partnership firm and the defendants 2 and 3 are the partners of the first defendant firm. On 5.7.1979 a crossed demand draft for a sum of Rs.65,063/- in favour of the first defendant firm was received by the plaintiff for clearance through Canara Bank, Headquarters Road Branch, Coimbatore. The Canara Bank received the payment and endorsed the same by affixing its rubber stamp. The first defendant has withdrawn the amount from Canara Bank. On 22.8.1979, the first defendant attempted to encash another Demand Draft, and it was found that the demand draft was a forged one and had been tampered with. Canara Bank Branch Manager of Head Quarters Road branch telephoned the plaintiff's branch Manager about this incident and asked the plaintiff's Branch Manager to scrutinise the suit demand draft cleared by the plaintiff. On careful scrutiny, the plaintiff's Branch Manager suspected material alteration of the instrument. It was clear that the date, the name of the payee, the amount of the draft, the names of the drawer and drawee had all been tampered with and materially altered by some chemical process in an ingenious manner. A complaint has been lodged with the police on 25.8.1979. After investigation, the second defendant was arrested and the police recovered Rs.31,000/-. The said amount has been paid to the plaintiff. The police were in search of others. The first defendant had no title to the instrument. The first defendant who had drawn the amount from the Canara Bank is liable to pay back the amount, and the plaintiff is entitled to recover the amount from the first defendant. Out of Rs.65,063/-, the plaintiff has received through police Rs.31,000/-. The suit is filed to recover a sum of Rs.39001.18 with interest at 18% per annum from the date of plaint till realisation.