1. This appeal has been arising out of the judgment and decree dated 26.11.2004 passed in O.S.No.61 of 2004 by the learned Principal District Judge, Dharmapuri at Krishnagiri.

2. The averments made in the plaint in O.S.No.61 of 2004 are as follows:-

The first defendant presented a Demand Draft bearing No.549046, dated 27.10.1997, for Rs.5,20,000/- (Rupees Five Lakhs and Twenty Thousand only) through its Banker, Canara Bank, branch at Hosur viz., the second defendant, purported to have been issued by the State Bank of India, branch at Ghatkopar, (East) Mumbai and purported to have been drawn on the plaintiff Bank branch at Hosur. The said DD was presented by the first defendant through its Banker, second defendant for clearing on its behalf to the plaintiff Bank, branch at Hosur, on 06.11.1997. The plaintiff Bank, in good faith, paid a sum of Rs.5,20,000/- to the first defendant. At the time of General Reconciliation of all the payments effected by DD as per banking practice, the plaintiff's Inter Office Reconciliation Department (Drafts) in Mumbai, intimated the plaintiff Bank branch at Hosur on 20.07.1998 that the above payment of Rs.5,20,000/-, paid by the plaintiff Ba