ALLAHABAD BANK LTD Vs. KUL BHUSHAN

JUDGEMENT

(1.) This appeal arises out of a suit instituted by Dr. Nand Lal plaintiff, whose name has now been Substituted by his legal representatives who are the respondents in this appeal, for recovery of a sum of Rs. 1,500/- on basis of cheques fictitiously drawn an his name on the appellant. Allahabad Bank Limited, Jullundur.

(2.) Dr. Nand Lal had a current account with the Allahabad Bank, Jullundur, since July 1948, and there is no dispute that ample funds were available in his credit on the relevant dates when three cheques drawn in his name were honoured and cashed by the Allahabad Bank Limited. The first cheque of Rs. 500/-, Exhibit P. 4 was drawn and cashed On 4th of December, 1950, the second one of like amount of 13th December, 1950 was cashed on the following day, and the third one also of Rs. 500/- of 27th of December, 1950, was cashed on 29th of December, 1950. According to Dr. Nand Lal, these cheques on which his signatures were forged were cashed by defendants Nos. 4 and 5 through the connivance and instrumentality of the Bank's employees, defendants Nos. 2 and

(3.) The fraud was discovered by him on 13th of February 1951 when on a perusal of the statement of accounts sent to him by the Bank, he found that these three cheques had been encashed. Dr. Nand Lal forthwith lodged a first information report against Karam Vir, defendant No. 5. Though Karam Vir was prosecuted and convicted by the Magistrate he was acquitted in appeal. Thereafter the present suit was instituted on 2nd of December 1953 for recovery of Rs. 1,500/-as principal and Rs. 265/12/- as interest. The suit was dismissed, in the first instance, by the trial Judge on 28th of February, 1955, and again after remand on 8th of August, 1955. It is worthy of note that the trial Judge, though he found that the cheques had not been issued by Dr. Nand Lal, came to the conclusion that the forgery had not been established. The lower appellate Court has, however, held that it was sufficient for the plaintiff to show that the signatures on the cheques were not his and the Bank could not be exonerated from liability. The lower appellate Court has relied in aid on the evidence of the handwriting expert in whose opinion the signatures on the cheques were forged. The lower appellate Court has, however, decreed the suit only against the first defendant, namely, the Allahabad Bank, who has now come in appeal to this Court. 3. Mr. Bahri, the learned counsel for the appellant Bank has, in the first instance, attacked the finding of the learned District Judge regarding the forged signatures on the cheques. The counsel has argued that the lower appellate Court has rejected the finding of the trial Judge without even discussing the reasons embodied in the judgment of the first Court. In my opinion, the finding of the lower appellate Court is not open to challenge in second appeal based as it is on evidence of the expert witness together with the other evidence adduced on behalf of the plaintiff. The ground on which the finding of the lower appellate Court has been assailed is tenuous and I have no hesitation in rejecting it.