Legal Question in Banking Law in India

The person has stolen 4 leaves from cheque book and withdrawn the amount Rs.60000,50000,100000,5000 respectively.Bank has not verified the identity of the bearer person by asking pan card no. or any id proof.whether bank will be held responsible for deficiency in service (negligence)?


Asked on 12/16/10, 2:11 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

were the blank cheques signed by the account holder. If so, the Bank cannot be faulted for making payment if the signatures of the drawer are genuine. The drawer will be held responsible for leaving blank cheques signed. However in high value cheques like the first three, it can be tried to fasten liability on the bank if the payments were made to wrong persons, on the ground that the payments were not in due course.

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Answered on 12/16/10, 7:00 pm


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