Legal Question in Banking Law in India
Q :1 A payee of a cheque informs the Bank on which it is drawn that the cheque drawn in his favour has been lost and requests it to STOP PAYMENT on the cheque pending an advice from the drawer. But before this stop payment instruction is received from the drawer, the cheque is presented through the clearing. How should the drawee bank act?
Asked on 8/23/11, 12:14 pm
2 Answers from Attorneys
J. Radhakrishnan
independent Practice
payee cannot issue stop payment instructions. However if he has lost the cheque, he can alert the drawee bank. The drawee bank can put the collecting bank on notice. If the collecting bank collects for its customer in good faith, it can escape from the charge of conversion.
Answered on 8/23/11, 6:23 pm
Prof.Somnath Mukherjee
s.mukherjee associates,09874053359
the above answer is right
Answered on 8/24/11, 8:57 am
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