The appellant, Leeuw, operated a liquor outlet and sold liquor to Thabo Mofokeng. Mofokeng tendered payment by way of two cheques: (1) R48,598.69 deposited on 14 May 1999, and (2) R89,000 deposited on 21 May 1999. Both cheques were drawn by General Food Industries Limited. Before depositing the first cheque, the appellant approached Motaung, a bank clerk at the respondent bank's enquiries desk, who confirmed the cheque was acceptable for deposit (checking it was not post-dated, amounts corresponded, and there was no stop payment). On 17 May 1999, the bank allowed the appellant to withdraw R48,000 from the proceeds of the first cheque after he phoned Motaung requesting authorization. On 24 May 1999, the bank was notified that both cheques bore forged signatures. The bank reversed the credits in the appellant's account. The bank sued for R48,000 (the amount withdrawn before the forgery was discovered). The appellant defended on the basis of estoppel and counterclaimed for R89,000.