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

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.