Legal Question in Banking Law in India

I have a few old DDs misplaced somewhere in the

house and found them now.The person who

Signed for the DDs in the bank left the job who worked for us long ago and we. could not trace her.

The bank authorities refused to cancel the DDs or to

revalidate the them.The DDs were drawn in favour of

Greater Visakhapatnam municipal corporation.

Kindly suggest a solution.


Asked on 5/04/15, 5:53 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

04.05.2015

Dear Sir / Madam,

The Bank remains legally bound and is liable to refund the Demand Draft (DD) amount less cancellation charges and credit it to the Current / Savings A/c of the drawer of the DD. You do not need to unnecessarily raise the doubt and suspicion of the Bank and complicate matters by mentioning that the Authorized Signatory on the DD's was previously employed by you. If the Bank has debited your A/c with the amount of the Demand Draft at the time of its issue, on cancellation the Bank has to credit your A/c with the DD. If the Bank refuses to refund the money, the Bank has to provide you with a valid explanation and reason for refusal to cancel the DDs, and the Bank remains liable to repay you the DD amount plus Rs. 100/- per day for the entire period of default.

Regards,

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Answered on 5/04/15, 10:08 am


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