Banking Law

Querist : Anonymous (Querist) 02 April 2010 This query is : Resolved
Can a Bank refuse to pay a cheque if the payee column is filled as EB arrears for the month which is irrelevant to the banker along with the payee's name. Any case laws on this issue ?

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Deekshitulu.V.S.R (Expert) 02 April 2010
The Payee's name appearing in the account shall correspond to the payees name on the cheque also. If not the Banker can refuse payment. Of course there may be some spelling mistake in writing the name of the payee which the Banker will look to

Parthasarathi Loganathan (Expert) 02 April 2010
Bank is entitled to refuse payment of cheque if the name of the payee mismatches with that of the account holder or even if it is misspelt.