Mr Maximus is a current account customer of Berjaya Bank Berhad. Between July and December 2022, Ms Noti, Mr Maximuss accounts clerk, who was not an authorised signatory to cheques, forged several cheques drawn on Bank Berjaya. All the cheques were honoured by the Bank Berjaya and Mr Maximuss account was debited accordingly. In the meantime, Mr Maximus has never been in the habit to examine his periodical bank statement to ensure and verify that his account is being properly maintained by the bank. The forgeries were discovered in February 2023 and Max brought an action against Bank Berjaya claiming RM334,000 for the amount paid out on the forged cheques. Bank Berjaya argued that it was a duty of Mr Maximus to take precautions to prevent forgeries on the part of his employees, and that as a customer, Mr Maximus should have examined the accuracy of his bank statements and to inform the bank of any discrepancy existing therewith. Bank Berjaya also argued that they have paid the cheques in question in good faith and in the ordinary course of business and should therefore be protected under the Bills of Exchange Act 1949. (30marks)

using IRAC.