Banker's accountability...return of cheques...reg
Anguluri Annappa
(Querist) 01 March 2014
This query is : Resolved
Respected Experts,
Please advice who is accountable in the following case:
1. The Paying Banker who closed the account
of the customer without finalising the
position of unused cheque leaves and
returning a cheque in clearing with the
reason ACCOUNT CLOSED, thereby giving an
opportunity to commit fraud by his
customer.
2. The Service branch of the Collecting
bank, who could not intimate the return
position of the cheque before closure of
branch.
3. The Collecting bank branch passed the
credit in the normal course before clo
sure of the day's business resulting in
payment of a returned cheque.
If recovery is not forthcoming who is
accountable,
a. The Paying Banker who acted with
gross negligence so that his custo
mer defrauded public.
b. The Service branch who could not even
alert the collecting branch not to
pass the credit before closure of the
collecting branch.
c. The collecting Bank branch to have
passed the credit.
In this case the Collecting Bank branch
had taken all the precautions before
opening of the account of the customer
for whom the cheque was collected.
Yours faithfully.
Annappa
Guest
(Expert) 01 March 2014
Academic query.
As an assistant manager, you should have known that date of issue of cheque, date of presentation of cheque in the collecting branch and subsequent presentation by collecting branch to the account holder's bank branch and date of closing of account are relevant in any case. You have made mention of none of these elements.
Still further, credit to the destination account is always subject to clearance of cheque, not granted. In most of the cases, business people try to get advance credit on the date of presentation of cheque to get adequate fund flow, which you are supposed to know as the assistant manager of your organisation.
Rajendra K Goyal
(Expert) 02 March 2014
The Bank which closed the account can not be held responsible, the customer used the cheques of a closed account is liable.
The local clearing rules are to be seen. The Bank which paid the amount of collected instrument till the chances of clearing return is over is liable if any amount has been paid.
The amount so paid can be claimed from the customer.
The query seems to be academic, better send facts for suitable advise.
T. Kalaiselvan, Advocate
(Expert) 02 March 2014
The author's query has been properly addressed by the experts and I endorse my similar views on the subject.
Sudhir Kumar, Advocate
(Expert) 08 March 2014
repeated
http://www.lawyersclubindia.com/experts/Banker-s-accountability-return-of-cheques-reg-456831.asp#.Uxsq9s41hn4
