[2017] 1 LNS 62 (HC)
This was a case between the Plaintiff and Defendant and the Third Party. The Plaintiff’s claim in this case is premised on the tort of negligence against the Defendant in honouring and making payments on a number of cheques signed by signatories whom the Plaintiff alleges to be unauthorized to do so, without mandate. The main issue was whether the Defendant was negligent in making payments on the cheques issued from the account of the Plaintiff but signed by third party signatories. The High Court concluded that the Defendant went on its own frolic resulting in bringing in the 3rd party action which was unnecessary hence the court dismissed the Defendant’s claim against the 3rd party with cost. Datuk Ganesan acted for SME Bank.