Banking – Forged DD ( Demand draft) – Encashment – Bank entitled to recover the sums claimed from the person who encashed it

banking – Forged DD ( Demand draft) – Encashment  –  If it was a stolen leaf on which signatures of bank officials were forged to prepare the DD, then that clearly was not a valid instrument and could not have been honoured – Negotiable Instruments Act, 1881, Section 118  shifts the burden of proof to the person who has accepted such instrument in due course and acting upon it – Section 72 of the contract Act, 1872 or the principles of equity can be invoked in such circumstances – Petitioners had acted on demand drafts which were prepared on stolen draft leaves, bank drafts were fraudulently prepared on stolen bank draft leaves –  These were not valid instruments and could not have resulted in any valid credit…..

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