S.A.SHAH - (1.)The applicant is the original plaintiff-partnership firm doing business of Ladies Hosiery at Ahmedabad. They had a bank account with the respondent No. 1 Bank namely State Bank of India which was current account and which was converted into cash-credit account on 7-7-1972. It is the case of the applicant that the applicant issued five cheques prior to 7-7-72 out of which three cheques which were encashed were properly encashed but the remaining two cheques issued to one Bombay firm were tampered with and have been encashed not by the payee though the same were payees account cheques and respondent Bank has made the payment of those payees cheques negligently and carelessly to some third party. The applicant-petitioner therefore gave notice to the Bank to reimburse the applicant-petitioner to that extent.
(2.)The plaintiff stated that one cheque dt. 30-6-72 was for Rs. 1596 and the second cheque dt. 22-7-72 was for the amount of Rs. 479 The Bank having failed to reimburse the plaintiff the plaintiff filed a Summary suit No. 2009/75 claiming Rs. 2075-75 as principal amount of these two cheques and Rs. 747.00 as interest in all Rs. 2822 ps.
(3.)The trial court has granted unconditional leave to defend to the bank. The main contention of the bank was that they were not negligent and therefore the plaintiff was not entitled to have any reimbursement. The Small Causes Court Ahmedabad recorded the evidence of both the parties and after hearing the arguments dismissed the suit with costs on 18-1-1979.