open cheque fraud Archives

42. A customer of the Royal Bank drew an open cheque for Rs.1000 payable to P, the cheque was stolen. The thief forged the payee’s endorsement and presented the cheque for payment at the branch upon which it was drawn. The bank cashier paid the cheque without asking for proof of identity. To whom is the bank liable for the cashier’s action?

Facts of the case Issues in the case Principles associated with the case Judgement