KANNUR DISTRICT CO OPERATIVE BANK LTD Vs. KERALA STATE CO OPERATIVE MARKETING FEDERATION
HIGH COURT OF KERALA
KANNUR DISTRICT CO-OPERATIVE BANK LTD
KERALA STATE CO-OPERATIVE MARKETING FEDERATION
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(1.) The 1st defendant, the Cannanore District Co-operative Bank Ltd., Cannore Branch, in O.S. 339/83 before the sub court, Tellicherry, is the appellant. The plaintiff, Kerala State Co-operative Marketing Federation, Kochi, filed the suit for realization of money due under two cheques. The court below decreed the suit. Aggrieved by the above judgment and decree, the 1st defendant filed this appeal. The plaintiff Co-operative Marketing Federation was supplying fertilizers to defendants 2 and 3 viz. Pattannur Service Co-operative Bank Ltd., Pattanur and Aichoor Service Co-operative Bank Ltd., Aichoor, respectively. Towards the value of the fertilizer, the 2 nd defendant had issued a cheque for Rs. 19003.42 and the 3 rd defendant for rs. 9970.76 in favour of the plaintiff. Defendants 2 and 3 were having accounts with the 1st defendant bank and both the above cheques were drawn on the 1 st defendant bank. The plaintiff received both the cheques. When those cheques were forwarded to their head office by post, the above cheques were stolen and the name of the payee was defaced and altered and forged in the name of the 4th defendant viz. K.S. Marar. The 4th defendant was holding an account with the 1st defendant. The above two cheques were encashed by 4th defendant through the 1st defendant. It was alleged that the above defaced and forged cheques were encashed by the 4th defendant only because of the negligence on the part of the defendant and hence the plaintiff filed the suit claiming the amount covered by those two cheques with interest thereon from the 1 st defendant.
(2.) The 1st defendant in the written statement contended that both the cheques were issued in the name of K.S. Marar and there was no evidence of any defacement ot forging of the cheques and as such the above cheques had been collected in the account of the 4 th defendant and was encashed by him. There was no apparent alteration or forging of the cheque which could be detected. The allegation that K. S. Marar was a fictitious person was incorrect and an account was opened in the name of K. S. Marar as he had been introduced by K.P.Madhavan, Secretary of Puzhathi Service Co-operative Bank, and the above society was a customer of the 1 st defendant. The 1 st defendant had taken due care and caution and had made reasonable scrutiny and had acted in good faith without any negligence and as such the 1st defendant was not liable for the plaint claim. It was further contended that the plaintiff should have been more careful in handling the cheques and the defendant was not guilty of any negligence in encashing the cheques.
(3.) Defendants 2 and 3 filed separate written statement contending that they had issued the cheques in favour of the 1 st defendant and not in favour of Sri. K. S. Marar. The amounts due to the plaintiff towards the value of the fertilizer supplied by the plaintiff was paid by crossed cheques and the cheques had been defaced and altered or forged in the name of the 4 th defendant.;
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