diligence.
29. The question as to the extent to which a collecting banker can be held
liable for wrongful encashment of negotiable instruments has been ... bank to avail the immunity under section 131
as a collecting banker he has to bring himself within the
conditions formulated by the section. Otherwise
direction does not bind the paying banker who may ignore same, though in actual practice the banker who collects such a cheque does see that ... crossed
to that banker. Section 129 provides that any
banker paying a cheque crossed generally, other
wise than to a banker or a cheque crossed
case of the plaintiff is that defendant No.1,
being the collecting banker presented to plaintiff bank
in all nine demand drafts stated to have ... case of the plaintiff that defendant No.1 being the
collecting banker will not get any protection against the
Negotiable Instruments Act , since
good faith or whether there is no negligence of
the collecting banker has been dealt with by the Supreme Court in
many judgments ... relation of banker and customer began as soon
as the first cheque was handed in to the banker for collection, and not
when
Bank of India (RBI) norms and that it was just a collecting banker and
hence was not liable. Thus, suit for recovery was filed ... relation of banker and customer began as soon as the
first cheque was handed in to the banker for collection,
and not when
other judgments and summarized the
principles governing the liability of a collecting banker as under:-
11. The principles governing the liability of a collecting banker ... They read
as follows:
"(1) As a general rule the collecting banker shall be
exposed to his usual liability under common law for
conversion
other documentation regarding
identity was collected, by itself proceeded to hold that,
the defendant No.1 - collecting banker was negligent
and not entitled for immunity ... acts of opening of the account and collection
of demand drafts as a collecting Banker has also
remained two different acts, was not properly
appreciated
care."
12.The legal principles governing the liability of a
collecting banker are settled by the Apex Court in Kerala State Co-
operative Marketing ... principles governing the liability of a collecting
banker have also been extracted in the impugned judgment.
They read as follows:
"(1) As a general
that the
answering defendant is a Service Branch and is the Collecting Banker
of the cheques tendered at two of it's branches ... relation of banker and customer began as soon as the first
cheque was handed in to the banker for collection, and not when
period of limitation ? OPP
iii) Whether defendant no.2 as the collecting banker is protected
against any claim on the ground that the proceeds ... relied upon, the law with
respect to the liability of the collecting banker, considering the
provisions of Sections 131 and 131A of the Negotiable Instrument
