cpc

self cheque


Respected Sir,

I am having business account with one of nationalised bank.Recently what happened one of cheque from my cheque book got stolen and it got encashed at bank counter.On recipet of bank statment  i came to know same so i went to bank and obtained copy of cheque from bank and got it xerox.I found that cheque is encashed as self cheque on front side of cheque someone did forged signature however on back side of cheque he did not put my forged signature.Now my question is please guide me on what are remidies do i have against bank since on self cheque revrseside there is no signature of mine.Is there any provisions of banking act under which i can recover my money.Please provide crystal clear answer rather then writing some tricky reply.

Thanking You

Paras

 
Reply   
 
POWER OF DEFENSE IS IMMENSE

the cheques are always self cum bearer unless crossed so bank is not at fault for payment.

 
Reply   
 



But is there no provision or compulsion to put accont holders signature on both front and back of cheque??

 
Reply   
 
Advocate

Bank has to refund the money paid under cheque with forged signature of the drawer.  But you will have to prove that it was forged. Presume that the cheque was not crossed and hence payable to bearer.  Normally banks insist for the signature of the drawer, in the case of self cheques, on the reverse side of the cheque, for evidencing the receipt of the payment; but it is not compulsory as per banking law, since it was bearer cheque. 

As per banking law, if a dog is coming to the bank with a bag hanging at his neck containing a bearer cheque, the banker is justified if he puts the cheque amount by cash, inside the said bag, for the dog to take it to the owner. You know, the dog cannot sign on the reverse side of the cheque. If you feel it a tricky answer, please ignore it.  No expert will be happy to answer qeiries, if asked at gun point.  Hence my advice to the friend who raised the query, is to be patient. For legal remedy, there is no ready-made formula. Hence no body can give crystal clear answers as you demanded.  In the instant case, you have to speak with the bank, send lawyer notice and if necessary file complaint before Consumer Court. 

 
Reply   
 

I am not an Advocate and hence not possible to offer a legal remedy. Nevertheless I opine that whether wriring singature on the revrse of Cheque, for drawal of cash,  is legally required or not it has become customary for Banks to insist on Receiver's signature on the Cheque. In the instant case, this customary practice is violated. Hence if you represent the matter to the higher authorities of Bank, I believe your grievence will  be solved. You may also consider approaching Banking Ombudsman

 
Reply   
 

Friend, the onus of proving that  the signature were froged will be yours, banks to be extra careful and in justified manned do insist on signing in the back of the cheque but it is not a law, as far adopting any legal proceeding, i suggest that you you consider that , beacause it shall be a non yealding one , kindly speak to the bank employees and assertain ways in which they may help you  as suggested by MR. KV SUBBA RAO, if the amount is not large i suggest that you forget the issue and be careful in time to come.

 
Reply   
 
FIN

Please take up the matter with the bank and obtain tips for help. If you are a good old a/c holder bank shall be inclined to retain you.

You can lodge a written complaint addressed to the Branch Manager and can escalate to the Nodal officer and MD. The onus of proving that your signatures are forged shall be on you. The bank follow many activities which are termed as banking practices and by the same the employee who has authorized the payment is under obligation to obtain signatures of the person collecting payment ( some employees even ask to put the name) on the reverse of the bank. The bank's are under CCTV surveillance and based on your complaint can conduct in house inquiry. The concerned employee shall face the heat for violating the banking practice of the bank and being lenient. If the bank issues a reprimand to the employee in writing, you can try and obtain copy under RTI. RBI has issued instructions which are on their website for being extra careful to prevent such happenings.

You can issue legal notice and peruse your complaint.

 

 
Reply   
 
FIN

We have made enquiries with a nationalised bank and the bank officer has mentioned verbally:

The HO of the bank issues circulars to all branches on process/procedures/practices to be followed by all staff and as per that bank employee who has processed the cheque/passed the cheque and even cashier are required to obtain double signature on the reverse of the self cheque.

Under RTI you can obtain this circular.

If the branch where you have a/c is uncooperative you may use your resources and rapport and obtain clues from other branch and proceed to obtain copies.

Once you have lodged complaint with BM/Nodal Officer/MD, the bank shall be under obligation to initiate enquiry in line with their circulars to all branches on process/procedures/practices and you are within your rights to obtain the copies of all material evidence including the letters/reprimands issued by the bank to its staff in pursuance to your complaint and it shall be useful for your defense.

You are accountable and responsible for loosing cheque book and not reporting it to the bank.

Bank staff compares the signatures on the impression of naked eye e.g. flow etc.

 
Reply   
 
advocate

CHEQUES ARE NEGOTIABLE INSTRUMENTS AND IF BEARER,CAN BE PAID BY CASHIER TO ANY PERSON WHO IS PROVIDING SIGNATURE ON ITS BACK ,SIGNATURE ON SELF CHEQUES ON BACK IS INSISTED SOME TIME BY SOME BANKS AS A PRECAUTION AND THAT IS NOT A LEGAL REQUIRED.

BUT THIS ALL DOES NOT MEAN THAT A BANK CAN MAKE PAYMENT IF THE SIGNATURE ON THE CHEQUE BEING PAID IS FORGED AND IMPERSONATED BY SOMEONELSE PRTENDING TO BE A/C HOLDER.NORMALLY BANK SIGNATURE IS KNOWN EITHER TO BANK BECAUSE OF SPECIMEN RECORD OR TO A/CHOLDER.OTHERES KNOWING PERSONS MAY BE THOSE WHO USE TO RECEIVE PAYMENTS FROM A/CHOLDER.

YOU WERE UNDER DUTY TO REPORT LOSS OF CHEQUE TO BANK AS WELL AS TO POLICESTATION.

DESPITE ALL THIS YOU CAN FILE A CASE AGAINST BANK FOR LOSS OF CHEQUE AMOUNT CLAIMING THAT BANK HAS BEEN AT NEGLIGENCE IN PAYING CHEQUE WHICH DID NOT BEAR YOR SIGNATURE WHICH AMOUNTS TO DEFICIENCY IN SERVICE ON THE PART OF BANK.

 
Reply   
 
FIN

Obtain the copy of bank circulars. The onus for non compliance to bank procedure shall be on branch.

Your chances of recovery thru any forum shall be ebtter.

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

  Search Forum








×

Menu

IPC Grand Course     |    x