Drafts drawn by one branch of a bank on another payable to order
Full Text
Drafts drawn by one branch of a bank on another payable to order.—Where any draft, that is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.
Plain English Summary
Extends the banking protection under Section 85(1) to bank drafts (demand drafts) drawn by one branch of a bank on another office of the same bank.
Key Legal Elements
- Applies to bank drafts drawn by one office of a bank on another office of the same bank
- The draft must be payable to order on demand
- The bank is discharged by payment in due course even if the endorsement by the payee is forged
Practical Note
Protects banks issuing and paying Demand Drafts (DDs). Bank drafts are not cheques because they are drawn by a bank on itself, but they operate similarly. Section 85A ensures the paying bank is protected against forged endorsements on drafts in the exact same manner as order cheques.
हिंदी पाठ
बैंक की एक शाखा द्वारा दूसरी शाखा पर लिखे गए मांग ड्राफ्ट जो आदेशानुसार देय हों।—जहां कोई ड्राफ्ट, जो कि धन का भुगतान करने का एक आदेश है, एक बैंक के एक कार्यालय द्वारा उसी बैंक के दूसरे कार्यालय पर मांग पर आदेशानुसार देय (payable to order on demand) किसी धनराशि के लिए लिखा गया है, और आदाता (payee) द्वारा या उसकी ओर से पृष्ठांकित होना प्रतीत होता है, वहां बैंक यथाविधि भुगतान (payment in due course) द्वारा दायित्व से मुक्त हो जाता है।