Report No. 11
149. Liability of a banker paying crossed cheques otherwise than to a banker.-
Where the banker on whom a cheque is drawn which is crossed generally, pays the same otherwise than to a banker, or pays a cheque crossed specially otherwise than to the banker to whom it is so crossed, or his agent for collection, being a banker, he is liable to the true owner of the cheque than a for any loss he may sustain owing to the cheque having been so paid:
[Section 129, modified]
Provided that where a cheque is presented for payment which does not at the time of presentment appear to be crossed, or to have had a crossing which has been obliterated, added to or altered otherwise than as authorised by this Act, the banker paying the cheque in good faith and without negligence shall not be responsible or incur any liability, nor shall the payment be questioned, by reason of the cheque having been crossed, or of the crossing having been obliterated or having been added to or altered otherwise than as authorised by this Act, and of payment having been made otherwise than to a banker or to the banker to whom the cheque is or was crossed or to his agent for collection, being a banker, as the case may be.1
1. Cf. section 79(2), proviso, BEA.
[Section 89, part]