Kuwait Court of Cassation principle number 802

Payment by the drawee bank of the amount of a cheque to its first beneficiary where that cheque originally bore a forged signature. Does not discharge the bank’s liability towards its customer. Reason therefor: this instrument never had the character of a cheque at any time, because it lacked an essential condition for its existence, namely the drawer’s valid signature, regardless of the degree of perfection of that forgery. Condition thereof. No fault or negligence on the customer’s part; otherwise, he bears the consequences of his fault. - Presentation by the endorsee of a cheque endorsed by way of transfer of title to the drawee bank to collect its amount. The bank is required only to verify the regularity and sequence of the successive endorsements on the cheque and that the person presenting it for payment is the last endorsee; it has no duty to verify the authenticity of the endorsers’ signatures. The judgment’s departure from this and its holding the bank liable for paying the cheque because it did not verify the authenticity of the endorser’s signature. An error in the application of the law requiring its cassation.