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NI Act! Lets see who can solve??????????

IPCC 518 views 1 replies

Rahul

Chartered Accountnat CS

1585 Points Posted on 14 April 2011

can anybody plz help me in understanding and solving d following mentioned questions?

Q 1 D is induced by A to draw a cheque in favour of P, who is an existing person. A instead of sending the cheque to P, forges his name and pays the cheque into his own bank. Can D recover the amount of the cheque from A s banker

Q2 A induced B by fraud to draw a cheque payble to C or order. A obtained the cheque, forged C s endorsement and collected proceeds to d cheque through his bankers. DECIDE

(a) If B, the drawer, can recover d amount of the cheque from C s bankers.

(b) If C is a fictitious payee

Am not getting it, guyz and girls plz help me.

Replies (1)

Arpit Sharma

CA Final & CWA Final Student

231 Points Posted on 14 April 2011

Well i will like to give it a try atleast

Understanding Case

Rahul took a cheque from arpit on the name of Mr X i.e it was payable to Mr X and should be deposited in the account of Mr X , but Instead of giving the cheque to Mr X, Rahul did forgery and wrote his name on the cheque and deposited in his bank account and collected payment thereof.

Can arpit recover amount from Rahul's Banker?

( Arpit intented to make the payment to Mr. X, but the amount was collected by rahul after doing forgery )

Solution

Rahul's banker is not liable since collecting banker is not liable for any loss caused to the true ower (Arpit) due to defective title of the holder (Rahul) ,Provided the collecting banker acted in good faith and without negligence while collecting the amount of the crossed cheque as an agent.