HYNDMAN-JONES CJ

The question turns on whether the words are directory to the payee of the bill or document or merely in the nature of a warning. The learned Judge below appears to have thought them merely in the nature of a warning, because, he says, put in English form, the clause runs "the bank will not be responsible for forged bills or forged endorsement" and the Chartered Bank, Singapore, affords a somewhat similar instance "cheque books must be kept under lock and key." If that was the way the learned Judge looked at it I do not agree with him; I do not think his expression "the bank will not be responsible for forged bills or forged endorsement" is really a correct paraphrase of the literal words "both men and document to be identified. False drawing is not allowed." These words are most clearly not a warning, but a direction to the payer. If that be so the document is no longer an unconditional order in writing for payment of money, and subsection 2 of section 3 of the Bills of Exchange Act provides in distinct terms that an instrument which orders any act to be done in addition to the payment of money is not a bill of exchange.

The learned Judge then proceeded to deal with the other arguments for the respondent and allowed the appeal.