Legal Question in Banking Law in India

My employee stole a blank cheque that was bearing the accountholder's signatures on the front. He made it a "self or bearer" cheque, filled up the amount, forged accountholder's signatures on the back of the cheque (forged endorsement), signed under a fictitious identity and encashed it. Do I have any claim against the bank for encashing it under forged endorsement on the back of the cheque ? Is there any court ruling in support of my claim ?


Asked on 8/12/09, 9:20 pm

2 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

while clearing the cheque, the banks only verify the signatures at the front and there is no legal requirement for signing the cheque at the back even though its to be paid as self. at the most you can initiate proceedings against your employee for forging your signatures.

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Answered on 8/13/09, 2:58 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The bank may not be guilty because no endorsement may be needed for payment of a bearer cheque.

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Answered on 8/13/09, 2:19 pm


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