M was induced by the fraud of W to draw a cheque in favour of K or order. K was an existing person, and when M drew the cheque in his favour he intended that K or his indorsee should receive the money. W obtained the cheque, forged K’s indorsement, paid the cheque into his own account with the N. and S. W. Bank, and they, on Presenting it to M’s bank received payment.
Held, that K was not a ‘fictitious’ person within the meaning of section 7, sub-section 3, of the Bills of Exchange Act 1882, and that accordingly the N. and S. W. Bank were liable in the amount of the cheque to M.
Held further, in an action under precisely similar circumstances between I and the bank, that the fact that W had advanced to I a sum of money only pounds 120 less than the sum in the cheque was immaterial, and that the bank had no right of set-off.
Judges:
Lord Chancellor (Loreburn), Lords Robertson and Collins
Citations:
[1908] UKHL 986, 45 SLR 986,
Links:
Jurisdiction:
England and Wales
Banking
Updated: 26 April 2022; Ref: scu.621502