Jayamohan v. Hatton National Bank Ltd. – sllr 2001 volume 3 page 392

Brief
In the case between the Respondent Bank (employer) and the Appellant, a bank cashier, the court addressed the issue of whether the cashier breached the implied contractual duty of care by disbursing funds based on a fraudulent internal payment voucher. It was determined that liability could arise for pure economic loss suffered by the bank as a result of negligent handling of forged documents by an employee. The judgment reaffirmed the principle that bank employees, bound by contract, are required to exercise due diligence and follow prescribed verification procedures when processing internal payment instruments. Reference was made to specific contractual terms, internal bank procedures, and evidentiary shortcomings, emphasizing that a failure to comply with established processes con