Busongora Development Association Ltd v Centenary Rural Development Bank Ltd (HCT-00-CC-CS-048 of 2004 ) [2005] UGCOMMC 37 (8 July 2005);


Search Summary: 

The plaintiff sued the defendant in negligence
for recovery of ss 50,000,000 paid to one of its
signatories from their account upon forgery of
the signatories’ signature without confirming
from them.

Headnote and Holding: 

The court considered whether the defendant
was negligent in responding to the check
entitling the plaintiff to recover the money
paid. The court held that money deposited on
the account it was very had to be withdrew
without fraud one the same day in few hours.
The court further held that the defendant would

have succeeded if it proved that there was
proof of fraud committed with the knowledge,
actual or constructive, of the plaintiff.
Therefore in absence evidence, the defendant
was negligent in paying the money.


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