Payment of crossed cheque out of due course
Full Text
Payment of crossed cheque out of due course.—Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.
Plain English Summary
Imposes direct financial liability on a banker who pays a crossed cheque in violation of its crossing terms to the true owner for any resulting loss.
Key Legal Elements
- Paying generally crossed cheque other than through a bank
- Paying specially crossed cheque to someone other than designated bank or its agent
- Payment is out of due course
- Banker is directly liable in damages to true owner
Practical Note
Statutory basis for actions in conversion against paying banks. When a fraudster steals an Account Payee or crossed cheque and the bank pays cash over the counter or remits to an unauthorized entity, Section 129 gives the true owner a direct action in civil court or consumer commission to recover the entire loss with interest.
हिंदी पाठ
रेखांकित चेक का सम्यक् अनुक्रम से बाहर संदाय।—कोई भी बैंककार जो सामान्यतः रेखांकित चेक का संदाय किसी बैंककार के सिवाय अन्यथा करता है, या विशेषतः रेखांकित चेक का संदाय उस बैंककार के, जिसके नाम वह रेखांकित है, या संग्रहण के लिए उसके बैंककार अभिकर्ता के सिवाय अन्यथा करता है, वह चेक के वास्तविक स्वामी के प्रति किसी भी ऐसे नुकसान के लिए दायी होगा जो चेक का इस प्रकार संदाय किए जाने के कारण उसने उठाया हो।