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Showing contexts for: constructive knowledge in Canara Bank vs Canara Sales Corporation & Ors on 22 April, 1987Matching Fragments
It was further contended that inaction for a long period would amount to such negligence, as would persuade a Court to impute to the customer, with knowledge or at any rate constructive knowledge, to decline him, relief in an action for recovery of amounts, which would be to the detriment of an innocent party, namely the Bank.
For this purpose. dictionary meanings of the word 'know- ledge was brought to our notice. "Knowledge may include not only actual knowledge, i.e.. actual awareness of the facts relevant. but constructive knowledge. i.e.. knowledge at- tributed by law to the party in the circumstances, whether he actually had the knowledge or not, and knowledge may be attributed to a person who has sought to avoid finding out, or has shut his eyes to obvious means of knowledge. e.g.. the man who is offered valuables cheaply in circumstances which suggest that they may well have been stolen. but who refrains from enquiry".
Black's Law Dictionary Fifth Edn. defines. "Constructive knowledge" as "If one by exercise of reasonable care would have known a fact. he is deemed to have had costructive knowledge of such fact, e.g., matters of public record".
"Notice" means "bringing it to a person's knowledge".
Then he referred us to the Transfer of Property Act. Trusts Act, Law of Agency. etc.. to contend that a person is said to have noticed of a fact when but for wilful absten- tion from an enquiry. he would have known it and that in equity a man who ought to have known a fact should be treat- ed as if he actually does know it.
He then developed his submission as follows:
It is accepted to be a duty of customer who knows that his cheques are being forged, to inform the bank. If he fails to give such an information, he is estopped from claiming that the cheques were forged. In law. there should be no differ-1146
ence in the consequence between a person having constructive knowledge and a person having actual knowledge. Thus a person having constructive knowledge of a matter. cannot be allowed to take advantage of his own negli- gence.