Public Bank Berhad v Bukit Baru Villas Sdn Bhd

Appellant(s): Public Bank Berhad

Respondent(s): Bukit Baru Villas Sdn Bhd

• YA Dato' Lee Swee Seng
• YA Datuk Azimah binti Omar
• YA Dato' Faizah Binti Jamaludin

• The plaintiff, a company, commenced proceedings against the defendant bank alleging that the bank had honoured 13 cheques bearing forged signatures, resulting in a loss of RM5,170,000.00.
• The plaintiff's case was that a director of the company had forged the signatures of authorised signatories on these cheques, which were then paid out by the bank between March 2015 and January 2016.
• The High Court found the signatures to be forged and held the bank liable for negligence and breach of duty, but only awarded partial recovery due to the limitation period for some cheques. Both parties appealed.

• Whether the signatures on the impugned cheques were indeed forged.
• Whether the bank could rely on statutory defences under sections 24 and 73A of the Bills of Exchange Act 1949.
• Whether the plaintiff could rely on section 29 of the Limitation Act 1953 to extend the limitation period for its claim.

• The Court of Appeal dismissed both appeals, affirming the High Court's decision.
• The Court found that the High Court's finding of forgery was supported by expert evidence, direct testimony, and admissions from the bank's own officer, and that the bank failed to establish statutory defences under sections 24 and 73A of the Bills of Exchange Act 1949.
• The Court also affirmed the High Court's decision that the plaintiff could not rely on section 29 of the Limitation Act 1953 to overcome the limitation period for a portion of its claim, as fraud was not pleaded against the bank.