B. SUBHASHAN REDDY, J.

( 1 ) THIS appeal is directed against the judgment and decree rendered by the Court of the First Subordinate Judge, Kurnool, in O. S. No. 8 of 1979. The defendant is the appellant. The Andhra Bank-defendant is the appellant herein and assails the judgment and decree rendered by the court below mulcting it with the liability of payment of Rs. 1,60,400 together with interest at 12 per cent. per annum from 14/06/1979, till payment and also costs. The parties are referred to as arrayed in the suit.

( 2 ) THE Kurnool District Co-operative Central Bank is the plaintiff. It has instituted a suit claiming a sum of Rs. 1,60,400 with interest thereon from the date of suit on the ground that the defendant was negligent in discharge of functions as collecting bank for its customer. The imputation against the defendant was that the defendant had not verified the antecedents of its customer, Mr. A. Rama Rao, at the time of opening his account, that when he presented the drafts for conversion, the defendant had failed to exercise due care and caution, that even after the said conversion after the transfer of amount from the plaintiff s bank to the defendant s bank into the

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