ROSALI Vs. SYNDICATE BANK

JUDGEMENT

(1.) The appellant herein is the plaintiff. The suit filed for recovery of money with interest.

(2.) The case of the plaintiff is that in the year 1979, she opened a Saving Bank Account bearing No.12978 at Canara Bank, Mylapore Branch and transacting with the defendant bank through her messenger-cum-relative by name Thomas. During the month of May, 1987, the credit balance should have been Rs.30,787.12. However, she found that there was only Rs.6370.12 as on 29.06.1987 and the defendant bank has honoured cheques presented by Thomas forging her signatures. Totally a sum of Rs.24,750/- has been withdrawn by the said Thomas using her cheques and affixing her signatures fraudulently. She gave a complaint to the Police, which ended in conviction of Thomas. Since the defendant bank has negligently honoured cheques presented by Thomas by forging her signatures, they are liable to pay a sum of Rs.24,750/- with interest at the rate of 18%.

(3.) The defendant Bank contested the suit through their counter on the ground that the plaintiff used to come along with Thomas to the Bank while operating her account and some time she used to send Thomas with cheque and passbook for withdrawal. Each and every time, when cheques were presented by Thomas, the signatures were verified and passed, after due diligent. Since the plaintiff allowed her relative-cum-messenger Thomas to operate her account on her behalf, there was no occasion to suspect Thomas. Further, the signatures in the cheques had tallied with the specimen signatures kept in the record of the bank. Hence, there was no negligence on the part of the Bank. Since the plaintiff has failed to keep the passbook and cheque book in under safe custody, but allowed her messenger Thomas to handle her accounts and cheques, she cannot blame the bank for the fraud committed by her representative.