Bank's liability

G L Gujrati (Querist) 23 June 2009 This query is : Resolved
Can a Bank after receipt of stop payment advice from the drawer and debiting the charges for the same,if pays the cheque on presentation, recover the amount by debiting the drawer's main Cash Credit account which is fully drawn ?.The cheque was drawn on the branch which has sub limit (10% of the total santioned limit) allocated to it.

Please advise with case laws and legal provosions what course of action is open to the drawer if bank does so.

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Y V Vishweshwar Rao (Expert) 23 June 2009
Onece the Stop Payment is received by the Bank , the Cheque can not be paid.

It if fact to be verified - whether stop payment request is received by bank before payment of the Cheque or not ?

G L Gujrati (Querist) 25 June 2009
Stop payment advice was received by bank before payment of cheque

Uma parameswaran (Expert) 25 June 2009
When a stop payment notice submitted before Bank usually the Bank given a receipt as an acceptance of the notice .Whether you have received it or not?.If you have any document to prove that you have submitted stop payment notice before encashing the cheque then you can take action against Bank.

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