Loss of Cheque
R.Ranganathan
(Querist) 10 September 2010
This query is : Resolved
Loss of Cheque from Bank. Cheque not traceable. Issuer of cheque is not issuing a fresh cheque. How far Bank liable to the person who has to get his money. What compensation need be paid under the circumstances - Cheque amount or how much for negligence if any.
Parthasarathi Loganathan
(Expert) 10 September 2010
Banks normally block payment of such lost cheques and drawer is safe to issue a replacement cheque to the beneficiary.
Vinoba
(Expert) 10 September 2010
In normal course, if a cheque is lost by the banker itself, then they will obviously stop payment on the lost cheque and you can very well ask the drawer to issue a fresh cheque. If the drawer refuses to issue a fresh cheque, then you can always sue the bank for compensation under per relevant provisions of Consumer Protection Act since it falls within the purview of the Act.
Vinoba.L
Advocate
R.Ranganathan
(Querist) 10 September 2010
In this matter drawer and drawee of the cheque are colluding and the drawee is claiming the value of the cheque as compensation for the loss of cheque. Anybody who can cite decisions of this type of case either in consumer court or civil court
M/s. Y-not legal services
(Expert) 10 September 2010
The bank only the responsible person for your cheque.. The drawer understood your situation mean he can issue a fresh cheque. If he denaid to issue fresh cheque mean you don't have any way except filing consumer complaint against your banker under deficiency in service..
adv. rajeev ( rajoo )
(Expert) 10 September 2010
When drawer is not ready to issue fresh cheque then it is the bounden duty of the bank to pay the cheque amount to you. And it is the duty of the bank to provide you better service. So issue notice to the bank to pay the cheque amount and you can file a consumer case against the bank for not rendering the better service.
R.Ranganathan
(Querist) 10 September 2010
Mr. Rajeev. I feel your opinion will give rise to complications and the drawee will take advantage of this loss for making illegal gains. You can correct me if I am wrong.
Under the above contention of yours "Is it not possible for fraudsters to collude with some Bank employee and misplace the cheques, then the drawee will claim the entire Cheque amount even if it several lakhs or crores, though he is not entitled to any enforceable legal debt payable from the drawer of the cheque as in NI Act". Kindly look into this matter in this angle and give me the opinion.
s.subramanian
(Expert) 10 September 2010
The negligence on the part of the bank in this circumstance is presumable. It is for the bank to prove that it is fraudulent move to cause loss to the bank. Then only the bank wil be relieved of its burden. Otherwise not.
Parthasarathi Loganathan
(Expert) 11 September 2010
Paying banker normally takes up with the collecting banker or drawer of the cheque to settle the matter in case of loss of instruments.
R.Ranganathan
(Querist) 11 September 2010
Learned experts. My query is regarding the amount of compensation paying under this circumstance. Cheque is lost and not traceable. Drawer not co-operating to issue another cheque. Drawee claiming the full amount of the cheque. But no loss incurred. Does this not amount to collusion and cheating by the drawer and drawee to cheat the bank. One important fact in this, is the drawee of the cheque is the Bank employee working in the same branch from where the cheque gets lost.
Rajeev kulshreshtha
(Expert) 11 September 2010
You can get the compensation from bank in regard of deficiency in service made by bank for losing the cheque. If issuer of cheque is not issuing the fresh cheque you can claim your loan amount through recovery proceeding.
R.Ranganathan
(Querist) 11 September 2010
Mr. Rajeev Kulshreshtha, any citations in this regard that only compensation for the deficiency of service can be claimed from the Bank and the loan amount to be claimed from the issuer of cheque may be provided. In this case the issuer of cheque is not coming into the picture. Drawee i.e. the person who has given the loan is taking action only against the Bank and not from the issuer of the cheque who is a bank employee.
sanjay mundada
(Expert) 11 September 2010
No doubt about to claim and get compensation from bank, but remember that till receivable amount is not receive ,u have right to recover it.issuer of cheque can not refuse on the basis of once cheque issued .base title fact is recovery of amt.so
1-send letter to cheque issuer to inform bank to cancel said cheque and stop payment due to loss of cheque from bank.
2 make complaint at police station about loss of cheque .
3- ask him to issue fresh cheque.
4-if he refuses u can go various legal recovery actions/suits.
5-expenses incurred for it ,u can demand from bank in separate action aganst bank at consumer forum.
masood ausaf
(Expert) 11 September 2010
Well in this case the cheque has been lost by the Bank itself and the amount of the said cheque has not been received by the payee. Therefore. you may ask the issuer of the cheque to provide the fresh cheque or file the recovery suit against the the issuer and the bank for the amount of the cheque plus compensation and damages. In case you file the case against the bank only you will not be able to win the same as according to the law the bank is not liable to the payee (person to whom the amount is payable)and is only liable to the A/C holder. There is one such precedent reported in 1954 AIR.
M/s. Y-not legal services
(Expert) 15 September 2010
Surely you can file a compensation from the banker by filing a consumer complaint under deficiency in service.. Otherwise not possible.. You know very well that more than me..
