NI 1881 Act on Letter
RajanaVenu
(Querist) 02 July 2010
This query is : Open
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 transactions
*******************************************Agreement on LOA form that I signed->
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.
*******************************************
Above in the letter "MY NAME" represent my original name in the content of letter ( first one) , and also the word "bining" is not a typo from me, but it was the actual word in the LOA agreement form.
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.
Could you please help what options are available and what sections this falls under NI 1881 Act. How to approach them.
Thank you for any help or inputs.
Raj
