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Corporate & Other Laws
If b fraudulently forges signature of A in his cheque book and encashes it in the bank of A. Then can A sue the bank ?
Answers (12)
mani charan
Yes bank will be liable,but if the forgery is regarding the signature of the indorser then the bank is not liable if acted in good faith
Can't get it.can u provide one example?
Thread Starter
Gokul NathCan't get it.can u provide one example?
A gave a check to B ,then B indorsed it to C ,C lost the check, then ,D found it and forged the signature of C and indorsed it to D(himself) or to E(any other person),now on presenting the check, the banker can pay the check if all other conditions ( essential of a valid check,in cosidering the crossing ,etc)are satisfied,banker will not be liable for the instrument
mani charan
A gave a check to B ,then B indorsed it to C ,C lost the check, then ,D found it and forged the signature of C and indorsed it to D(himself) or to E(any other person),now on presenting the check, the banker can pay the check if all other conditions ( essential of a valid check,in cosidering the crossing ,etc)are satisfied,banker will not be liable for the instrument
Ya ok i get it now.in ur example if C stole the cheque from B and forge the signature himself by endorsing to himself and then encashing the cheque.will bank still be liable?
Thread Starter
Gokul NathYa ok i get it now.in ur example if C stole the cheque from B and forge the signature himself by endorsing to himself and then encashing the cheque.will bank still be liable?
Pls read the example,i said C lost it And D found it and Froged the signature of C
mani charan
Pls read the example,i said C lost it And D found it and Froged the signature of C
Ya i get that example.i am asking what happens in my new example that is like if B lost it and C got the cheque and forged it and encashed himself.will bank still liable?
Thread Starter
Gokul NathYa i get that example.i am asking what happens in my new example that is like if B lost it and C got the cheque and forged it and encashed himself.will bank still liable?
No bank is liable only for the forgery of the signature of the account holder
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