Lesotho Bank (1999) Limited v Boliba Multi-Purpose Cooperative Society (C of A (CIV) 43 of 2011) [2012] LSCA 7 (27 April 2012)
The evidence established that the July cheques were indeed forgeries. The bank, having paid out on forged cheques, was not entitled to debit the customer's account and was liable for the loss.
Source-derived case information.
- Citation
- [2012] LSCA 7
- Parties
- Appellant: Lesotho Bank (1999) Limited; Respondent: Boliba Multipurpose Cooperative Society
- Court
- Court of Appeal
- Jurisdiction
- Lesotho
- Case Number
- C of A (CIV) 43 of 2011
- Procedural Posture
- Civil Appeal / Judgment
- Outcome
- appeal dismissed
- Legal Topics
- Forgery of Cheques, Bank Liability, Customer Account Debiting
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Lesotho Bank (1999) Limited
Appellant
Boliba Multipurpose Cooperative Society
Respondent
Procedural Posture
Civil Appeal / Judgment
Legal Issues
- 1 Whether the July cheques were forgeries
- 2 Whether the bank was liable for debiting the customer's account based on forged cheques
Ratio Decidendi
The evidence established that the July cheques were indeed forgeries. The bank, having paid out on forged cheques, was not entitled to debit the customer's account and was liable for the loss.
Court Disposition
appeal dismissed
Orders
- Appeal dismissed with costs.
Full Case Text
Judgment text and source record
1 paragraphs
IN THE COUR T OF AP PE AL OF LE S OTH O C OF A (CIV) NO. 4 3 OF 2 0 1 1 In t h e m a t ter b etween : LE S OTHO BANK (1 9 9 9 ) LIMITE D AP PE LLANT AND BOLIBA MULTI PUR P OSE COOPE R ATIVE S OCIE TY COR AM S MALBE RGE R J A S COTT J A HOWIE J A HE ARD : 1 6 APRIL 2 0 1 2 DE LIVE RE D: 2 7 APRIL 2 0 1 2 R E S P ONDE NT S UMMAR Y Ba n k – lia b ilit y for a ccep t in g a n d h on ou r in g ch equ es d r a wn on it , os t en s ib ly b y it s cu s t om er – cu s t om er a llegin g ch equ es t o b e for ger ies – b a n k d en yin g ch equ es in fa ct for ger ies – wh et h er for ger y p r oved . J UDGME NT HOWIE J A [1 ] Th e p la in tiff co-op er a tive s ociety wa s a t a ll r eleva n t tim es a cu s tom er of t h e d efen d a n t b a n k . In la te J u ly 2 0 0 2 t h e b a n k a ccep ted a n d p a id t h r ee ch equ es (t h e J u ly ch equ es ). Th e ch equ e for m s in qu es tion b or e t h e b a n k ’s n a m e a s t h e is s u er of t h e for m s a n d t h e p la in tiff’s n a m e a s d r a wer . Below t h e p la in tiff’s n a m e wer e t wo s ign a t u r es . Th e ch equ e n u m b er s wer e 9 8 6 , 9 9 1 a n d 9 9 3 . On ea ch t h e wor d for ty wa s s p elt “FOURTHY”. [2 ] In t h e fir s t h a lf of Au gu s t 2 0 0 2 t h e b a n k a ccep ted a n d p a id t h r ee ot h er ch equ es (t h e Au gu s t ch equ es ). It is com m on ca u s e or n ot d is p u t a b le t h a t t h e Au gu s t ch equ es wer e d r a wn a n d s ign ed b y t wo a u t h or ized s ign a t or ies on b eh a lf of t h e p la in tiff on for m s fr om a ch equ e b ook is s u ed b y t h e b a n k to t h e p la in tiff. Th e n u m b er s of t h e Au gu s t ch equ es wer e a ls o 9 8 6 , 9 9 1 a n d 9 9 3 . It is fu r t h er com m on ca u s e t h a t t h e a m ou n ts of t h e J u ly ch equ es wer e d eb it ed t o t h e p la in tiff’s a ccou n t . [3 ] Allegin g t h a t t h e J u ly ch equ es wer e for ger ies , t h e p la in tiff s u ed t h e b a n k to r ecover t h e los s occa s ion ed b y t h e d eb its r efer r ed t o. [4 ] Th e b a n k ’s on ly d efen ce wa s a d en ia l t h a t t h e J u ly ch equ es wer e for ger ies . [5 ] Th e m a t ter ca m e b efor e Hla joa n e J in t h e High Cou r t . Th e p la in tiff led t h e evid en ce of its s a les m a n a ger , Ms . Ma m oek ets i Mon a p a t h i Ma b u s e. Th e b a n k led n o evid en ce. Th e lea r n ed J u d ge ga ve ju d gm en t for t h e p la in tiff, h en ce t h is a p p ea l b y t h e b a n k . I s h a ll con tin u e r efer r in g to t h e p a r ties a s t h ey wer e in t h e cou r t b elow. [6 ] E s s en tia lly, t h e a r gu m en t in s u p p or t of t h e a p p ea l is t h a t wit h ou t exp er t evid en ce t h e J u d ge s h ou ld n ot h a ve fou n d , a s s h e d id , t h a t t h e J u ly ch equ es wer e for ged . [7 ] Th e evid en ce of Ms Ma b u s e es ta b lis h ed t h e followin g u n con tr over ted or in con tr over tib le fa cts . S h e h er s elf s ign ed two of t h e Au gu s t ch equ es a n d s h e k n ew t h e ot h er s ign a t u r es on t h os e ch equ es to b e t h e s ign a t u r es of h er fellow em p loyees , Mr s . Mon a p a t h i a n d Mr . Kh a lem a . Th e s ign a t u r es on a ll t h e J u ly ch equ es a p p ea r ed to b e t h os e of Mr s . Mon a p a t h i a n d h er s elf. However , s h e s a id “t h e s ign a t u r es a r e n ot ou r s ”. In em p h a s izin g t h a t s h e d id n ot s ign t h e J u ly ch equ es , s h e p oin ted ou t t h a t s h e con clu d ed h er s ign a tu r e wit h a fu ll s t op wh ich wa s a b s en t fr om h er a p p a r en t s ign a tu r e on t h e J u ly ch equ es . [8 ] Ms Ma b u s e wen t on t o in d ica te va r iou s d iffer en ces in p r in tin g b etween t h e two s ets of ch equ es . Th e wor d s “Ma s er u Ma in ” (t h e b r a n ch ) a n d t h e p la in tiff’s n a m e on t h e J u ly ch equ es a r e in a d iffer en t typ e fon t fr om t h a t u s ed in p r in tin g t h os e n a m es on t h e Au gu s t ch equ es . Th e wor d “k a p a ” is s p elt wit h a ca p ita l “K” on t h e J u ly ch equ es a n d a lower ca s e “k ” on t h e Au gu s t ch equ es . S h e a d d ed t h a t t h e J u ly ch equ e for m s h a d p er for a tion s , wh ich t h e b a n k ’s ch equ e for m s d id n ot. [9 ] Fin a lly, on e h a s t h e gla r in g in a b ility of t h e p er s on wh o filled in t h e J u ly ch equ es t o s p ell “for ty” – s om et h in g on e wou ld n ot exp ect fr om exp er ien ced officia ls of a n es t a b lis h ed b u s in es s – a n d t h e im p r ob a b ilit y t h a t t h e b a n k is s u ed ch equ e for m s wit h t h e s a m e n u m b er s . Id en tica l n u m b er in g wou ld ob viou s ly p r om ote con fu s ion in s tea d of t h e or d er lin es s t h a t s equ en tia l n u m b er in g is in t en d ed t o a ch ieve. [1 0 ] Th e evid en ce t h u s s u m m a r ized wa s s u fficien t to s h ow t h a t t h e J u ly ch equ es wer e in d eed for ger ies . On e m igh t a d d t h a t a b s en t a ch a llen ge to t h e wit n es s ’ cr ed ib ility or r elia b ility, a n d t h er e wa s n on e, t h e evid en ce of a h a n d wr itin g exp er t cou ld n ot h a ve ta k en t h e m a t ter fu r t h er . [1 1 ] Th e lega l p os ition in Sou t h Afr ica n la w, a n d t h er e is n o b a s is for h old in g t h a t t h e la w of Les ot h o d iffer s in t h is r ega r d , is t h a t wh en t h e s ign a t u r e of t h e d r a wer of a ch equ e wh o is a b a n k ’s cu s t om er h a s b een for ge d , it is p la ced on t h e ch equ e wit h ou t t h e d r a wer ’s a u t h or ity. Wit h ou t s u ch a u t h or ity t h e b a n k p a ys t h e for ged ch equ e a t its own r is k a n d it m a y n ot d eb it t h e d r a wer ’s a ccou n t: s ee Ted co Ma n a gem en t Ser vices (Pvt ) Ltd v Gr a in Ma r k etin g Boa r d 1 9 9 7 (1 ) S A 1 9 6 (ZS C) a n d t h e ca s es cited a t 2 0 6 A- B. [1 2 ] Th e a p p ea l m u s t a ccor d in gly fa il a n d it is d is m is s ed wit h cos t s . I a gr ee: I a gr ee: ____________________ C. T. H OWIE J US TICE OF APPE AL ____________________ J . W. S MALBE R GE R J US TICE OF APPE AL ___________________ D. G. S COTT J US TICE OF APPE AL For t h e a p p ella n t Ad v T. R. Mp a k a : For t h e r es p on d en t: Mr . T. Ma t ooa n e