Legal Question in Banking Law in Pakistan

Payment of order cheque

We have pls/sb account of a ngo dealing in micro financing. It gives order cheques drawn on our bank to genral public on individually basis ranging from rs.14000 to 24000/- as financ. On daily basis, we have to make payment to more than 500 peoples. We got the cnic copy of the benificiary as well as signatures of officals of ngo (local office) being token of identification of the real benificiary of cheques befor paying the cheque. We took every solid measure to ensure payment to right person. Moreover, ngo officials also check the presence of the holder of cheque while issuing cheques.

Now the problem is that four people came and told that thier cheques have been wrongly and fraudulently been withdrawn by some others. On back of thier paid cheques there are also signatures of ngo representative being token of identification along with copies of cnics. The signattres of benificiaries are also there very much simmilar to the signatures appended on there cnics respectively.

You know that we took every possible measure to make payment of every cheque of the ngo. Now, we seek your kind counseling: 1- is our bank innocent in the light that our hall remains full with holders of cheques of nrsp for getting payments-great rush


Asked on 6/03/08, 5:28 am

1 Answer from Attorneys
Sheikh Mohammed Akram Nazir Akram Nazir Law Chamber

Re: Payment of order cheque

in our opinion bank employees has taken all due measures, which normally should have been taken. it is a fraud, and should have throughly investigated.

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Answered on 6/03/08, 12:26 pm


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