Forums
Back
NI ACT
Corporate & Other Laws
mam, in below question which provision applies, 1) duties of collecting banker or non negotiable crossing. My doubt is irrespective of defective title of holder, the collecting banker is not liable if 1) collects for its customer 2) crossed before comes to hands of collecting banker 3) good faith+ no negligence But answer given as....bcoz it is non negotiable crossing, he didnot become hdc and abc bank is liable.
Answers (2)
Not negotiable crossing provision under section 130 Shall apply here. On the face of the cheque, if it's clearly written "Not negotiable", then it's duty of the banker to check that there is no defect in title of the transferor & holder is infact HIDC. ABC bank will be liable here. Mr. Clever cannot transfer any better title to J. Relevant question is derived from case study Great Western Railway Co. vs. London and County Banking Co.
Your Reply