Delivery of instrument on payment or indemnity in case of loss
Full Text
Delivery of instrument on payment or indemnity in case of loss.—
(1) Any person liable to pay, and called upon by the holder thereof to pay, the amount due on a promissory note, bill of exchange or cheque is before payment entitled to have it shown, and is on payment entitled to have it delivered up, to him, or if the instrument is lost or cannot be produced, to be indemnified against any further claim thereon against him.
(2) Where the cheque is an electronic image of a truncated cheque, even after the payment the banker who received the payment shall be entitled to retain the truncated cheque.
(3) A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the banker who paid the instrument, shall be prima facie proof of such payment.
Plain English Summary
Entitles a payer to see the instrument before paying and have it delivered upon payment (or receive an indemnity if lost), regulating rules for electronic truncated cheques.
Key Legal Elements
- Payer has the right to inspect the instrument before paying
- Payer has the right to receive the physical instrument back upon full payment
- If the instrument is lost, the payer is entitled to receive an indemnity bond
- Banks can retain truncated physical cheques, and printed certificate serves as prima facie proof of payment
Practical Note
Crucial defense and evidence provision. Under sub-section (1), a debtor should never pay without seeing and getting back the physical instrument (to prevent multiple claims). Sub-section (3) is crucial for cheque bounce litigation, as the printed bank memo/slip with a certificate is prima facie proof of dishonour/payment.
हिंदी पाठ
भुगतान करने पर लिखत की सुपुर्दगी या खो जाने की स्थिति में क्षतिपूर्ति।—
(1) कोई भी व्यक्ति जो भुगतान करने के लिए उत्तरदायी है, और जिसके धारक द्वारा भुगतान करने की मांग की गई है, भुगतान से पहले लिखत को दिखाए जाने का हकदार है, और भुगतान करने पर उसे वापस पाने (deliver up) का हकदार है; अथवा यदि लिखत खो गया है या प्रस्तुत नहीं किया जा सकता है, तो उसके विरुद्ध भविष्य में किए जाने वाले किसी भी दावे के खिलाफ क्षतिपूर्ति (indemnified) प्राप्त करने का हकदार है।
(2) जहां चेक किसी काटे गए चेक (truncated cheque) की इलेक्ट्रॉनिक छवि है, वहां भुगतान के बाद भी भुगतान प्राप्त करने वाला बैंकर कटे हुए भौतिक चेक को अपने पास रखने का हकदार होगा।
(3) भुगतान करने वाले बैंकर द्वारा काटे गए चेक की इलेक्ट्रॉनिक छवि के प्रिंटआउट के नीचे जारी किया गया प्रमाण पत्र ऐसे भुगतान का प्रथमदृष्टया (prima facie) प्रमाण होगा।