Self drawn cheque


can anyone inform me about rules or regulation of RBI, relating payment to be Honoured by the Bank in case of Self Drawn Cheque.  in the instant case the Bank has honoured the self drawn cheque to some other person and the account holder now deaceased was not present in the city, in fact he expired on the same day of the transection in some other city propably 10 to 12 hrs journey.  the fcat that it is fraud, but need to know about the procedure laid down by RBI regarding the same.  the Branch Manager is might be actively involved. kindly inform about the action to be initated and also rule or RBI guideline.

 

regards..

 
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legal officer

self drawn cheque if not endorsed means if not signed by the makes/Drawer on the back as well on the front of the cheque then no other can receive payment from the bank/banker.

in ur case Branch manager is also involved u has a right to file complaint under sec. 420, 465, 467, 468, 471 and 120-B ipc.


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advocate.dma@gmail.com

In practice: A self drawn cheque can be encashed by anyone, if the drawer sign on both the side (endorsement on the back side by drawer) and the person who encashes the cheque also signs on the back side at the time of collecting the money. If there is no other signature on the back side, that means drawer only has collected the money, now the point in your case is that drawer could not have been physically present, then how the cheque reached Bank ??

 

1. Bank could not have given money to anyone without taking his signature on the back side. 

2. If the money is still given without back signature and the drawer could not have been present, then Bank certainly goofed up, but the question still remains how come cheque reached the Bank.

3. In nationalised Bank there are two windows, first window for validation and entry and second window for cash withdrawal, generally signature of withdrawing person is taken at both the places, check if this was done. 

 

In all likelyhood some other signature apart from two signatures of drawer in the front and back, would be there on the back side. Then I am sorry no case is made out.


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No endorsement at the back of the chq is required for a bearer chq (sec 46 of NI Act). However, it is required for Order chqs (same section).

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advocate.dma@gmail.com

The drawer of a "self" cheque can send his peon to Bank for encashment. In this case the drawer will sign on both front and back while the peon shall sign only on the back at the time of collecting the money. A self drawn cheque  by various definitions of payee / holder / delivery may fail for further negotiations. The peon in this case is withdrawing the money on behalf of drawer, the peon is not the holder.


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i can argue as a banker and lawyers can argue as lawyers, but i think abhishek has put in too little information for a banker/lawyer to suggest anything. abhishek .. can we have a more detailed query please?


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