Hi Experts,
I request your review on below facts and let me know your thoughts as per legal stand .
MR A ( Payee) and M/s B &Co ( Drawer ) hold their bank accounts with same branch of bank in XYZ Bank Branch ( Drawee).
MR A deposit a cheque received from MR B in his account amounting to 8000 INR
The cheque is duely credited to the account of MR A and equivalent amount was debited from Mr B.
Post this transaction , Mr A also presented a self cheque for withdrawing some amount let say 2000
Subsequent to credit of amount, after few days he found that his account was debited with the equivalent amount of cheque citing error n ommission by bank .
Since the account of MR A was also short of 2000 as he has withdrwn such amount, he found out that an cash deposit of 2000 was made in his account by "unknown" source.
During all this bank never informed or consulted MR A.
Now , when bank is contacted , bank mentioned that MR B ( Drawer) had informed the bank "Post Debit / clearance " that such cheque was misplaced in transit . Bank also confirm that MR B has also informed about this to Bank in past about this
Now bank says that they found that the rubber stamp present on the cheque presented by MR A was forged and had incorrect spelling of M/s B hence bank has debited the amount and returned it to account of M/s B nd Company.
During all this instances, the sms notification of MR A were also supressed so that he could not get intimation of
1. Unknown cash deposit
2. Debit of INR 8000
Finally, in one of the correspondence , bank says that cleared the cheque in "good Faith" and "without proper procedural verification"
Please advice
1. What is your opinion on banks authority based on the facts above
2. Should bank is liable to inform the payee in such case which they have not and as per which law ( if possible)
3. if bank was in possession of information, they never initiated a stop payment in M/s B and Co account.
4. Can good faith be an excuse to overlook professional responsibility
5. What is the extent of definition of good faith and if they are right to seek disguise /excuse of Good Faith
