Legal Question in Banking Law in India

a person issued a cheque on Dec 1st, 2009. she died on Dec 9th, 2009. the cheque was encashed on Dec 22nd without informing the bank about the death of the person, the death certificate was issued by the Govt. on Jan 6th, 2010. it that transaction correct ?


Asked on 3/14/10, 3:43 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

There is nothing illegal in the transaction. Since the cheque was issued prior to death, the drawee is not concerned with the death and is entitled in law to receive the cheque amount from the bank.

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Answered on 3/14/10, 6:28 am
J. Radhakrishnan independent Practice

If the Bank is not aware of the death of the drawer of the cheque when it honoured the same, the bank cannot be faulted. Nor the payee could be faulted for not informing the Bank even if he knew the death of the drawer.

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Answered on 3/14/10, 8:43 am


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