News Topics

A cheque is drawn payable to “Y or order”. It i...

A cheque is drawn payable to “Y or order”. It is stolen and the thief forges Y’s endorsement and endorses it to Z. The banker pays the cheque in due course. Can Y recover the money from the banker.

A cheque is drawn payable to “Y or order”. It is stolen and the thief forges Y’s endorsement and endorses it to Z. The banker pays the cheque in due course. Can Y recover the money from the banker.

0
Jeeba Lal Aug. 16, 2018

According to Section 85, the drawee banker is discharged when he pays a cheque payable to order when it is purported to be endorsed by or on behalf of the payee. Even though the endorsement of Mr. Y is forged, the banker is protected and he is discharged.

The true owner, Y, cannot recover the money from the drawee bank.

A cheque is drawn payable to “Y or order”. It is stolen and the thief forges Y’s endorsement and endorses it to Z. The banker pays the cheque in due course. Can Y recover the money from the banker.

Ask Question Create News