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

Canara Bank v. Canara Sales Corporation

AIR 1987 SC 1603 · Supreme Court of India

A banker cannot debit the customer's account on a forged cheque; even long delay in detecting the forgery does not ratify it unless the customer is estopped by negligence.

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