Background Facts

[1] The appellant was a customer of the respondent and operated acurrent account bearing no 0291040000006519 ('the account') with the respondent's branch at Lot P3.4, Jalan Persiaran, Seksyen 14, 40000 Shah Alam. On or about 12 November 2003, the appellant's office was broken into and burgled. Six days after the burglary vide its letter dated 18 November 2003, the appellant instructed the respondent to stop payment on the cheques bearing nos 431138, 431139, 431140, 431141 and 431142 (see p 286 of the appellant's Record [vol 3]). The respondent only received this letter on the following day. By this time, the respondent had already made payment to one Karim bin Mohd Nasir, the payee of all the cheques. The particulars of the cheques including the amount and the date of payment are as follows:

a) Cheque no 431138 dated 11 November 2003 for the sum of RM9,800.00 paid