WebbCollecting banker is defined as the authority or banker who receives the bills, cheques, drafts, pay orders, etc., on behalf of the clients. The liabilities of collecting bankers and … Webb11 okt. 2024 · According to Section 6 of the Act,’ It is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it …
Paying Banker : Duties and Rights of Paying Banker - Exactend
WebbWhile doing so the collecting banker has to act with responsibility ... protect the interests of his customer. A banker will get protection only when he acts in good faith and without negligence. While undertaking the function of collection of cheques, a banker may act either as- 1. A holder for value; or 2. An agent for collection. Webb131. Non-liability of banker receiving payment of cheque.—A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received ... pool fiberglass
Statutory Protection to Collecting Banker …
WebbCollecting Banker’s Protection: Under section 131 of negotiable instrument Act the collecting banker is not liable to the true owner of a cheque or a banker’s draft if his title … Webb22 nov. 2024 · A collecting banker can claim protection against conversion if the following conditions are fulfilled. Good Faith and Without Negligence: Statutory protection is available to a collecting banker when he receives payment in good faith and without … Webb16 nov. 2024 · (i) Protection regarding the order cheque In case of an order cheque, Section 85(1) of the NI Act provides statutory protection to the paying banker as follows, where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course. shard valorant