Legal Question in Banking Law in India
misuse of cheque
5 high value cheques with wrong signature were handed over to a person in lieu of some immature property dealing as a token (his specimen signatures are in hindi but he wrote his name in English in simple writting on the chqs given) and the person receving the chqs promises not to submit the chqs in his account,but he submits 2 chqs and the bank of the issuer party wrongly passes those chqs without tallying the origingal signatures and debit his account with the high value amount.My question is ''what binding comes over bank on wrongly passing those chqs'' ? Can the individual claim his amount from the bank ? What if the other party has withdrawn that amount from his bank and there is 'No' balance in his account ?
4 Answers from Attorneys
Re: misuse of cheque
If the cheques have not been signed by the drawer in accordance with the specimen signature with the Bank, normally a bank will be in order in refusing to pay the cheques. But in a given case, it is patent or proved that it is really the account holder who has signed the cheques from the cheque book issued by the Bank,notwithstanding the signatures in the cheques not tallying with the specimen signatures, the bank could successfully contend that it has honoured the cheques of the account holder and refuse to credit the amounts that have been disbursed on the cheques. It is a question of identity of the drawer of the cheque. Unless the drawer is able to prove that he did not issue the cheques in question, he will have no remedy either against the paying bank or the payee. No remedy in the given case.
Re: misuse of cheque
If other party had withdrawn the amount it is bank's liability to pay
Re: misuse of cheque
You may file consumer case against bank and can claim damages.
Re: misuse of cheque
You may claim damages from the Bank itself.
Please consult a local lawyer and approach to the consumer court.
It is advisable and will be fruitful as well.
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