Legal Question in Banking Law in India

A chq was provide by the customer to a random person who calls him without any inquiry about who was taking the chq. That chq was materially altered n presented in the bank for payment. The alteration on the chq was not apparent/visible. So banker has passed the chq without hesitation and payment has been made. Chq appeared to be a Bearer chq.
Que. 1 Is bank Liable for the loss ? ( As Section 89 of NI act gives protection to bank)
Que 2 Is it mandatory to take id proof in case of a Bearer chq?
Que 3 If bank is liable than on what condition it is so.

Asked on 5/19/16, 6:34 am

Fca Prashant Chavan Expert Edge LLP

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19.05.2016

Repeat query. Already answered. Any further advice or guidance only on prepayment.

Answered on 5/19/16, 6:44 am

0 users found helpful

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Already responded.

Answered on 5/19/16, 6:45 am

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