THE HONOURABLE SMT. JUSTICE K. SUJANA APPEAL SUIT NO.1883 OF 2002

JUDGMENT:

This appeal is filed by the appellant-plaintiff No.2 aggrieved by the judgment and decree dated 17.04.2002 passed in O.S.No.65 of 1993 on the file of Senior Civil Judge at Jagtial. The suit is filed for recovery of an amount of Rs.2,10,000/- from the defendant-State Bank of Hyderabad on the basis of fraudulent encashment of the cheque stolen from the office of the Executive Engineer, Panchayath Raj, Jagtial-plaintiff No.2 and for passing of the cheque by the defendant officials. For the sake of convenience the parties hereinafter be referred to as arrayed in the suit.

2. The facts of the case are that the Zilla Praja Parishad, Karimnagar, is the first plaintiff in the suit and the Executive Engineer, Panchayat Raj, Jagtial is the second plaintiff. The second plaintiff, who works under the overall control of the first plaintiff, opened a savings account with the defendant bank and deposited funds allotted to Zilla Praja Parishad, Karimnagar. The defendant bank issued a cheque book to the second plaintiff for drawing amounts from its account as needed.

3. A cheque leaf bearing No. 854396 along with counterfoil w