Facts of the Case Issues in the Case Principles Associated With It Judgement
Author: Sunny Shettipalli
14. A customer of the Royal Bank drew an open cheque for Rs.1000 payable to ‘P’, the cheque was stolen. The thief forged the payee’s endorsement and presented the cheque for payment at the branch upon which it was drawn. The bank cashier paid the check without asking for proof of identity. To whom is the bank liable for the cashier’s action?
Facts of the Case Issues in the Case Principles Associated With It Judgement
13. A, in point of pistol, forces ‘B’ to issue a bearer cheque in the name of ‘A’. A afterwards hands over the cheque to ‘C’ who takes it in good faith for valuable consideration. Is ‘C’ a holder in due course?
Facts of the Case Issues in the Case Principles Associated With It Judgement
12. ‘A’, the holder of a bill, endorses it to ‘B’ or order for the express purpose that ‘B’ gets it discounted. B negotiates the bill to ‘C’ who takes it bonafide and for value. Explain the position of ‘C’.
Facts of the Case Issues in the Case Principles Associated With It Judgement
11. D accepted a bill of exchange drawn in London. An endorsee in understanding with the drawer altered the place of drawing from London to America. Is D liable on the bill.
Facts of the Case Issues in the Case Principles Associated With It Judgement
10. A bill payable to X or order was stolen. Y forged X’s endorsement and endorsed it to Z who takes it for value and in good faith. Shall Z acquire a good title for it?
Facts of the Case Issues in the Case Principles Associated With It Judgement
9.A cheque is drawn payable to X or bearer. Y steals it and negotiates it to Z. Is it possible for X to get back the cheque from A ?
Facts of the Case Issues in the Case Principles Associated With It Judgement
8.’B’ Obtains A’s acceptance to a bill of exchange by fraud. B endorses it to ‘C’ who is a holder in due course, C endorses the bill to ‘D’ who knows of the fraud. Can ‘D’ get a title and recover money from A.
Facts of the Case Issues in the Case Principles Associated With It Judgement
7. There is credit balance in the account of Mr.Gopal. The banker wishes to set this off against an overdraft in the joint name of Gopal and Kamat. Will the bank exercise the right to set off in this situation?
Facts of the Case Issues in the Case Principles Associated With It Judgement
6. Mr.Srinu draws a cheque for Rs.2,000/- and hands it over to Balu by way of gift. Is Balu a holder in due course? Discuss the interest of Balu to receive the proceeds of the cheque.
Facts of the Case Issues in the Case Principles Associated With It Judgement