Landmark case · Law of Banking and Negotiable Instruments · Semester 5

Bihta Co-operative Development Cane Marketing Union Ltd. v. Bank of Bihar

AIR 1967 SC 389 · Supreme Court of India

A bank that pays on a forged endorsement cannot charge the true owner; payment is not in due course.

From topic

Paying and collecting banker; forged cheques — Unit II, Law of Banking and Negotiable Instruments.

Related sections:

Negotiable Instruments Act, 1881, 10 — Payment in due course
Negotiable Instruments Act, 1881, 85 — Cheque payable to order
Negotiable Instruments Act, 1881, 131 — Non-liability of banker receiving payment of cheque