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KembaraXtra-Case Law-Chan Man Sin v Attorney General for Hong Kong (1988) PC
I. Case Overview:
  • Citation: Chan Man Sin v Attorney General for Hong Kong (1988) PC
  • Area of Law: Theft, Choses in Action, Forgery, Banking Law
II. Facts:
  • Defendant (D): Accountant for two companies (H and M).
  • Companies (H & M): Held bank accounts in Hong Kong.
  • Offense: D forged cheques on H's and M's accounts.
  • Action: D withdrew funds using forged cheques and transferred them to his personal account.
  • Consequence: H's and M's accounts became overdrawn, forcing them to utilize overdraft facilities.
  • Charge: D was charged with theft of choses in action (debts owed by the bank to H and M).
III. Issue:
  • Whether the debts owed by the bank to the companies constitute property capable of being stolen when the defendant's actions caused the companies to utilize pre-existing overdraft facilities.
  • Whether the bank was entitled to honour the forged cheques
IV. Defendant's Argument on Appeal:
  • The bank had no right to honour the forged cheques.
  • The transactions based on forged cheques should be void.
V. Holding (Per Lord Oliver):
  • "One who draws, presents and negotiates a cheque on a particular bank account is assuming the rights of the owner of the credit in the account, or (as the case may be of the pre-negotiated right to draw on the account up to the agreed figure."​
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