Business Standard

Bank accountable for clearing forged cheque

Citing a Reserve Bank of India circular, the National Commission stated that the liability for honouring a forged cheque vests with the paying bank


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Jehangir B Gai

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Sameer Jain, proprietor of Net Solutions, held a Business Gold Account with IDBI Bank, Chandigarh Branch. On April 24, 2008, he was notified that Rs 42.8 lakh had been transferred from his account through a cheque payable to “Spectra Computer”.

Jain contacted his vendor “Spectra Computech”, which denied receiving this amount. Upon inquiry with his bank, Jain discovered that the cheque was drawn in favour of “Spectra CompuPech”, which had its account with Kotak Mahindra Bank, and his signature was forged. He repeatedly requested the bank to furnish a copy of the cheque, but the bank did not comply.

Jain approached the
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First Published: May 12 2024 | 10:03 PM IST

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