Legal Question in Banking Law in India
collection of cheque
a cheque fg sales tax commissioner,A(B) comes to the bank.A is the name of acity where as B is the name of state. there is no commisssioner for the city A .the commisssioner is for the whole state B cheque is crossed not negotiable account payee questions1)can the commissioner accept the cheque?(2)can the bank collect it ?is it correct to return it and get it rectified?
5 Answers from Attorneys
Re: collection of cheque
Please reword your question.
Its not clear what you want to ask.
Re: collection of cheque
If there is no commissioner for the city and only for the State, the Bank can collect it for the commissioner of the State. The Commissioner who is only for the State and not limited to the city "A" can refuse the cheque and direct it to be drawn in favour of Commissioner,"B". The Bank instead of collecting it for the Commissioner of the State is in order in returning the cheque to be correctly drawn.
Re: collection of cheque
Yes, they can proceed further; you cannot avoid your liability. better you send them a bank draft in lieu of the cheque amount.
Re: collection of cheque
Question is not clear.
Re: collection of cheque
Reply can be given if you rewrite question in tabulation form in chronological order.
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