ALLAHABAD BANK Vs. GREATER HYDERABAD BENEFIT FUND LTD

JUDGEMENT

(1.) the opposite party Nos.1 and 2 are the appellants.

(2.) Aggrieved by the order of the District Forum-II, Hyderabad in O. P. No.848/1996, dated 21.6.2000, the present appeal is filed.

(3.) The facts leading to the filing of the appeal are set out as hereunder : the complainant has opened a current account under Account No.696 at the Branch of the third opposite party and issued a cheque dated 5.11.1995 drawn on Himayatnagar Branch for issuing a demand draft in favour of its customer B. Kutumba Rao who is a resident of Vijayawada. The demand draft is issued for a sum of Rs.3 lakhs drawn on Allahabad Bank, Vijayawada branch. It is contended by the complainant that on inquiry they came to know that the demand draft was not issued by the opposite party in favour of B. Kutumba Rao, but issued in favour of M/s. Jaya Machinery, Vijayawada which is clearly contrary to the instructions given to the opposite party. It is further stated that the opposite party acted contrary to the instructions and acted in a negligent manner in discharging their obligations as a Banker. The inquiry reveals that somebody has encashed the demand draft and the complainant was disabled from recovering the said sum of Rs.3 lakhs on account of the negligence of the opposite party.