( 1 ) THIS appeal is at the instance of the plaintiff United Bank of India Limited and it arises out of a suit for recovery of money.

( 2 ) THE case of the plaintiff was that on January 14, 1957, the defendant no. 2, the Union Bank of India Limited, presented to the plaintiff bank, a cheque for Rs. 5,200/- bearing date January 11, 1957 purported to have been drawn by the Metal Alloy Co. Private Ltd. , a constituent of the plaintiff bank, in favour of the defendant no. 1, A. T. Alihussain and Co. and crossed "not negotiable and account payee only". The plaintiff bank, acting under the mistaken belief that the said cheque had in fact been duly signed by the said Metal alloy Co. paid the said sum of Rs. 5,200/- to the defendant Union Bank by debiting the C/d Account of the said constituent. The signature on the said cheque and all other writings appearing thereon had, since transpired, been forged and no one on behalf of company had signed or drawn the same. The forgery of the said cheque along with two other cheques were the subject-matter of criminal proceeding and in that proceeding one Prodyot Kumar Ghosh and another were convicted. On February 22, 1957, the plain