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RajanaVenu (None)     13 June 2010

NI 1881 ACT Banking

I have given an LOA to someone in India , who mis utilized to transfer money by a request  letter from one a/c to another a/c.

Contents of Letter wrote to Bank:
-------------------------------------------------------------------->
To
Bank ABC, City, State.

     Sub: transfer of funds.

     I, "MY NAME" not having check book with me and my A/C no : 12345.
     so please transfer 1Lakh ( One Lakh) to Mr. XYZ A/C no : 34556.

               Thank you.
                                                  Signature of LOA
                                                  (LOA Holder)
     Kinds Regards,
     Signature of LOA
     ( Name of LOA)
     
------------------------------------------------------------------------>

As per the LOA agreement document with Bank, the below lines were stated regarding the Debit Transactions.

" I /We hereby agree that all debits made by the bank in my/our account by honouring cheques/negotiable instruments/ debit slips signed by the said ... "LOA NAME"..... are conclusive and bining on me/us. "
 

Above in the letter "MY NAME" represent my original name, and also the word "bining" is not a typo from me, but it was the actual word.

When the letter say's " I, MY NAME " can bank accepts this below letter to process the transaction. ?

1) Can the LOA holder sign the letter when the contents says " I MY NAME". , as I have not written the letter OR signed.
2) Will this letter falls as a negotiable instrument / Bill Of Exchange category to process the transaction.

3) If LOA Holder signs this letter, can a bank accept this letter to perform a transaction.


Thank you for any help or inputs.
Raj



Learning

 2 Replies

harsh asthana (advocate)     14 June 2010

This can not be treated as a negotiable instrument you have a good case against bank

RajanaVenu (None)     16 June 2010

Thanks for your reply Mr. Harsh Asthana,  Please help me guide on this ,as this bank is asking me to cancel  my account within 15 days by sending a notice from a lawyer, due to these issues, as they as well framed several things , which were never happened. like phone abuse with employees by me,threatening statements etc.

 

--------------------------------------------------------------------------------------------------------------------------------------------->

1)   I/We hereby authorize you to honour all cheques/negiotable instruments drawn on the
above account provided such cheques are signed by "" LOA NAME .." whose specimen signature
card is enclosed by countersigned by me/us.


2)   I /We hereby agree that all debits made by the bank in my/our account by honouring
cheques/negotiable instruments/ debit slips signed by the said ... "LOA NAME".....
are conclusive and bining on me/us. "

I/We here by futher agree to abide by the provisions of the Non-resident(External)
account rules.

 

-------------------------------------------------------------------------------------------------------------------------------------------------->

Can the  point 1)  be classified for this transaction as legitimiate for the first question. I do not think so as

it was specifically for cheques. Could you please clarify and I really appreciate your help and suggestions.

 

Thanks

Venu Raj.


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