Legal Question in Banking Law in India

Sir,

My wife is in bank. One day a person produced a bearer cheque and he signed on back leaf as safi in hindi and took the money and left. The cheque was not marked as account payee it was like " pay safe or bearer" or bearer was also nor overcrossed. Few days later the issuer came and he was saying that the cheque was meant to b deposited into his currnt account named by "safe". But in fact cheque was not account payee and safe can be read as safi in anyone write in hindi. Now d bank officers are pressing for settlement and demonding for money from my wife. Sir I want to ask whether my wife is wrong in d matter. Should we go for settlement. Pls reply sir. And whether for a bearer cheque id or mobile number of peson who is producing is must by law.


Asked on 8/04/15, 7:39 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

05.08.2015

Dear Sir / Madam,

Apparently, the cheque was a bearer cheque and hence your wife has acted rightly to have honoured it. Yes, it is mandatory that the photo ID of the bearer is verified and his / her mobile number is mentioned on the reverse of the cheque. The issuer should have crossed the cheque as "A/c Payee" if he intended that the cheque be deposited for collection by the receiver. Since there was no mistake on the part of your wife, there is no question of a settlement.

Regards,

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Answered on 8/06/15, 3:37 am


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