1. This intra Court appeal, under Clause X of the Letters Patent, is at the instance of defendant No. 2 against the judgment and decree, passed by learned Single Judge in First Appeal No. 55 of 1985, decided on 19-9-1995.

2. Respondent No. 1 herein, (Hereinafter for brevity the 'NTC') had filed a suit against the appellant State Bank of Indore (Hereinafter for brevity the 'SBI') and respondent No. 2 Haider Ali for recovery of a sum of Rs. 46,000/- being value of 7 cheques, issued in favour of NTC by Haider Ali and deposited with appellant Bank but lost by it, interest and notice charges.

3. Facts giving rise for deciding the said appeal are mentioned hereinbelow:-

Defendant No. 1, Haider Ali, carried on business in cotton waste etc. from Indore. Defendant No. 2 (the present appellant) is a statutory corporation constituted and incorporated under the State Bank of India (Subsidiary Bank) Act, 1959 and is carrying on its banking business from its various branches situated in India and abroad. The defendant No. 1, pursuant to issuance of a Tender Notification, had taken delivery of the goods and towards price of the said cotton waste taken by him, he had issued 9 cheques to responde