Legal Question in Banking Law in India

A self cheque of Rs.2,500/- was presented for payment to a certain branch of a bank with core banking facility. The cheque was from another branch of same bank with core banking facility. The presenter was denied the payment on the ground that presence of account holder is necessary for encashment of self cheque, whereas the cheque was duly signed by the account holder. Further it was signed at back by him and at the time of presenting it for payment there was sufficient balance available in his account. The account holder could not present the cheque himself as he has to travel outstation for some urgent work. Is it legally correct to deny the payment of self cheque by bank on the ground that the presence of account holder is necessary? Can the account holder file for damages due to dishonoring of cheque? In such cases who is responsible for non payment the account holder or the bank?

Asked on 7/06/10, 4:27 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

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You can complain to the Banking ombudsman for the refusal of the Bank to honour your cheque duly endorsed by you to the presenter thereof if it is payable to bearer. If later the cheque bounced, you can also file a complaint for deficiency of service either before the Banking ombudsman and or the Consumer forum of the district concerned.

Answered on 7/07/10, 7:06 pm

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