CANARA BANK Vs. NALGONDA CO OPERATIVE BANK LTD

JUDGEMENT

(1.) CANARA Bank, Nalgonda, the defendant in the suit O. S. No. 251 of 1979 on the file of the Subordinate Judge, nalgonda, is in appeal against the judgment and decree dated 30. 06. 1987 passed therein. The Court below decreed the suit holding the defendant bank liable to pay a sum of Rs. 5,71,999/- with interest and costs to the Nalgonda Co-operative Central Bank limited, Nalgonda, the plaintiff therein.

(2.) FOR the sake of convenience the parties hereto shall be referred to as per their array before the trial Court.

(3.) THE plaint averments are to the following effect: the Suryapet Branch of the plaintiff bank issued two uncrossed demand drafts on 30. 10. 1976 in favour of one V. Ram Reddy and one V. Babu Rao respectively. The demand drafts bore Nos. 2211 and 2212 and were for a sum of Rs. 25/- each. These demand drafts were materially altered whereby the date of issue was shown as 02. 11. 1976, the payee was shown as M/s. Sudershan trading Corporation (for short, 'stc') and the amount payable under demand draft no. 2211 was shown to be Rs. 14. 500/- and the amount payable under demand draft no. 2212 was shown to be Rs. 35,500/- The demand drafts were also crossed. Copies of these demand drafts were marked as Exs. A4 and A6.