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2012 MarsdenLR 920

HIGH COURT MALAYA KUALA LUMPUR
MALAYSIA PLASTICS SDN BHD – Appellant
Versus
UNITED OVERSEAS BANK (MALAYSIA) BHD & ANOTHER SUIT – Respondent


Table of Content
1. background facts of the case. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. claims and defenses presented by the parties. (Para 20 , 21)
3. burden of proof regarding forgery. (Para 26 , 28 , 30)
4. legal definitions and key responsibilities of the bank in cases of forgery. (Para 39 , 40 , 46)
5. final judgment and dismissal of claims. (Para 94)

[1] The plaintiff in this case, Malaysia Plastic Sdn Bhd ("Customer") was a customer of the defendant, United Overseas Bank (Malaysia) Berhad ('the Bank') and maintained with it, several accounts. It has brought this suit against the bank in relation to eight (8) cheques amounting to RM1,608,000.00 ("Disputed Cheques") which the customer has alleged were wrongfully and without authority paid out from the customer's current account with the Bank.

[2] The bank had, both prior to and after the issuance of these eight cheques, honoured by payment on presentation, several tens of cheques, totaling several hundred thousand Ringgit. The majority of these cheques were legitimate or valid cheques that were correctly paid out by the bank. However a problem arose in respect of the eight cheques above, which on their face appeared to have been drawn by t

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