Business law

Both of the sections provide protection to banks from incuring liability in case of frauds or errors. Long story short, u/s 85 if a bank receives a fraudantly endorsed cheque and acts on it, it shall not be responsible, provided it worked with due dilligence. 

For example, A drew a cheque in favor of B, but a theif T steals the cheque and and puts an endorsement in his name. Now, the bank shall not be liable to A if it transfers the funds to T. A shall not be able to recover the money from bank.

U/s 131, A payee banker who in good faith and without negligence receives a payment(cheque) for its customer, and if the title to the cheque turns out to be defective, the banker shall not be responsible to the true owner of the cheque.