NATARAJAN, J.:- This appeal has been preferred by the defendant in O.S. No. 517 of 1969, on the file of the Court of the Subordinate Judge, Salem, while the memorandum of cross objections has been filed by the plaintiff therein.

2. The suit, out of which this appeal has arisen, was instituted by the respondent for recovery of a sum of Rs. 29,000, wrongly paid over to the appellant in discharge of a forged demand draft presented for conversion by it on behalf of an alleged customer of it. The learned Subordinate Judge sustained the case of the respondent but, however, found contributory negligence in the respondent as well and hence he disallowed a sum of Rs. 4,000 and decreed the suit for the balance of Rs. 25,000. The appeal is directed against the decree for Rs. 25,000, while the memorandum of cross objections is directed against the disallowance of a sum of Rs. 4000.

3. The respondent's suit came to be filed in the following circumstances: On 6-6-1969 one Shanthilal Manilal Desai (hereinafter referred to as S.M. Desai) opened a current account with the Indian Bank Ltd., Main Office, Salem (hereinafter referred to as the appellant bank). On 12-6-1969, one Mohamed Hussain o