Negotiable Instruments Act : Non-liability of banker receiving payment of cheque. Indian Bare Acts :

Negotiable Instruments Act,1881

Act No : 26

Section : Non-liability of banker receiving payment of cheque.

131.Non-liability of banker receiving payment of cheque. A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to, the true owner of the cheque by reason only of having received such payment. 42 1[Explanation.-A banker receives payment of a crossed cheque for a customer within the meaning of this section notwithstanding -that he credits his customer's account with the amount of the cheque before receiving payment thereof.] 2[131A.Application of Chapter to drafts. The provisions of this Chapter shall apply to any draft, as defined in section 85A, as if the draft were a cheque.]