JUDGMENT - B.U. WAHANE, J.:---This appeal is directed against the Judgment and order dated 27th November, 1981, passed by the Civil Judge, Senior Division, Nagpur in a Special Civil Suit No. 315 of 1977, allowing the claim of the respondent No. 1-plaintiff against the appellants and the respondent No. 2/original defendant. No. 1.

2. The facts giving rise to this appeal are as follows:

The respondent No. 1-plaintiff is a banking concern incorporated under the State Bank of India Act, 1955, having its Branch Office at Kingsway, Nagpur. The appellant No. 1/original defendant No. 2 is also a banking company, having its registered office at New Delhi. The appellant No. 2/original defendant No. 3 is a Branch Office at Nagpur, of the defendant No. 2.

On 15th October, 1976, the defendant No. 3 has sent a draft No. DB 691125 to the plaintiff through clearance for payment of Rs. 40,557.28/-. According to the bank practice, the payment under the draft has to be made or refused on the very day before 1.30 p.m. otherwise the Collecting Bank would presume that the draft has been passed for payment and would accordingly give credit to its customers for the amount of that draft. The defendant No. 1/respondent No. 2 Rajnibhai J. Patel is a customer of the appellant No. 2/defendant No. 3 Bank. The plaintiff Bank having received the demand draft (Exh. 47) through clearance, passed it for payment and accordingly the defendant No. 3 Bank credited the amount of the draft in the account of Rajnibhai J. Patel which was opened in the trade name of "Bright Corporation".

The plaintiff State Bank of India, there after came to know that the draft (Exh. 47) was forged one and accordingly brought this fact to the notice of the defendant No. 3 on 18th October, 1976. However, according to the defendant No. 3, it was brought to their notice on 25th October 1976. After getting the report from the plaintiff, the defendant No. 3 made an endorsement "stop payment" in the account of the defendant No. 1 Rajnibhai J. Patel. Thereafter, there was exchange of notices between the plaintiff and the defendant No. 3 for refund of the amount.

The defendant No. 1 Rajnibhai J. Patel, opened his account with the defendant No. 3 Bank on 11th October, 1976. A draft (Exh. 47) bearing No. DB 691125 was issued by the plaintiff Branch at Tiruputtur Branch in North Arcot District on 6th September 1976. The draft was for Rs. 1,557.28/-. It is alleged by the plaintiff that the purchaser of this draft gave report to Tiruputtur Branch that it was lost and hence a duplicate draft was subsequently issued by the said Branch. This duplicate draft bore No. 691985, dated 12th October 1976. It is a specific case of the plaintiff that the defendant No. 3 with whom the account of the defendant No. 1 Rajnibhai J. Patel was, did not act in good faith in sending this draft for collection of the amount through clearance. It is further alleged that the defendant No. 3 negligently put the cross marks across the writing of the draft, so as to mutilate the contents thereof. It is also alleged that since the draft (Exh. 47) was tendered to it for payment through clearance with due certificate by the defendant No. 3, the payment thereunder was ordered "ex-advice" meaning thereby that the payment was made even without waiting for the advice from the issuing Branch viz. Tirupttur Branch of the plaintiff. The plaintiff alleges that as the defendant No. 3 did not receive the amount under this draft in good faith, it is liable to reimburse the loss caused by the plaintiff Bank. According to the plaintiff, it would not have paid the amount, but for the certificate of the defendant No. 3 on the draft (Exh. 47), the amount was paid "ex-advice", as per the usual banking practice. According to the plaintiff, it is entitled to claim interest on the amount of Rs. 40,557.28/- at the rate of 16% per annum from 15th October, 1976 till 18th September 1977, and, therefore, claimed interest of Rs. 6,019.88/-. Thus, the

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