Legal Question in Banking Law in India

A obtained a CC limit by depositing title from a bank later on A has taken back his deposited title and limit closed but In his CCL A/C 5 Lac credit balance left at that time.He didnot surrender his cheque book and issued few cheque without informing bank against that amount which was dishonoured with remark "Refer to drawer".What was that?Can A b use his account as saving a/c without informing Bank or Bank has committed an error to dishonour the cheque.

Prashant Singh Hazari


Asked on 9/22/15, 8:58 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

22.09.2015

Dear Prashant Singh Hazari,

The Bank will release the title deed(s) of the asset(s) pledged by the Account holder to the Bank when there is nothing due and owing to the Bank in the overdraft Account - Cash-Credit (CC) limit and in normal parlance, the Account is closed by the Bank. If the Account has not been closed, the subsequent arrangement and documentation between the Bank and the Account holder takes effect.

Regards,

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Answered on 9/22/15, 9:57 am


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