OM PRAKASH JHUNJHUNWALA Vs. UCO BANK

JUDGEMENT

(1.) The plaintiffs Nos. 1 to 5 are the trustees of the trust for Texmaco Ltd. Employees' Provident Fund. The instant suit has been filed by the plaintiff for recovery of a sum of Rs. 7,90,000/- against the defendants, Jointly and severally along with interest. The claim in the suit arises out of a wrongful encashment of a forged cheque of the plaintiff Company.

(2.) The plaintiff claims that a Cheque bearing No. 143998 dated 21st September, 1987 is a forged cheque and the bank allowed the wrongful encashment of the said cheque without ascertaining that the signatures appearing on the said instrument are forged and the rubber stamp that appeared on the cheque was a forged rubber stamp of the plaintiff Company. The defendant failed to scrutinize the cheque of such high denomination before its encashment and failed in its duty in scrutinizing and verifying the signatures and the rubber stamp appearing on the cheque with that of the Specimen Signature Card and the specimen rubber stamp of the company that was kept with the Bank. The Bank acted negligently and acted in collusion and conspiracy with some person and/or persons unknown to the plaintiffs in facilitating encashment of such forged cheque.

(3.) The plaintiff in short in the suit claimed recovery of the loss of money wrongfully debited from their bank account. The plaintiff averred that any two of the plaintiffs, namely, plaintiffs Nos. 1, 2 and 3 were duly authorized to sign the cheques to operate the said current account. Prior to 7th August, 1987, the defendant No. 1 duly issued a cheque book containing 100 cheques bearing Nos. 143901 to 144000 in favour of the plaintiffs for their use in relation to the said current account. On 13th October, 1987, the statement of account was received from the defendant No. 1 in relation to the said current account and on verification thereof, it transpired that a cheque bearing No. 143998 for a sum of Rs. 7,50,000/- had been encashed on 21st September, 1987, against the endorsement 'Self from the said current account though no cheque bearing the said No. 143998 had been issued on 21st September, 1987 by the plaintiffs or any of them for being encashed. On 14th October, 1987, the plaintiffs Nos. 1 and 2 took inspection of the said cheque bearing No. 143998 and on scrutiny following discrepancies were noticed:-