Legal Question in Banking Law in India
protection to bank in case of cheque dishonour
a cheque was presented to a bank through clearing.however it was returned as the drawer was reported to be died 6 months back, how the bank is procted in doing so.
3 Answers from Attorneys
Re: protection to bank in case of cheque dishonour
If the bank is acquainted of death of account holder than the bank has to return it.
Re: protection to bank in case of cheque dishonour
once the accountholder is dead to the knowledge of the Bank in which account his cheque was issued, the Bank has to return the cheque as the mandate to honour the cheque ceased with the death of the accountholder. The Bank is perfectly in order in returning the cheque on the ground of the drawer known to have been dead on the date it was presented for payment. The payee has to claim only from the legal heirs of the drawer the amount, if the cheque was issued in discharge of the debt due to the payee.
Re: protection to bank in case of cheque dishonour
If the Bank has got information about the death of the Holder than the Bank has to return the said amount.
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