demand draft was presented R1 returned the demand draft stating that State
Bank of India, Dolijan branch (R3)
ordered stop payment. She had taken ... account payee draft payable to R at Bombay. R. did not receive the draft and instructed
the Bombay Branch to stop payment. The
purchaser
respondent No.3 issued "stop payment" advice to the appellant bank. Even after receiving the stop payment advice, the appellant bank paid ... stop payment" advice i.e. the payment was made ignoring "stop payment" advice. Secondly, the appellant bank released the payment
stop payment to ensure that there is no
double payment of the amount and also to confirm that no payment
against earlier Bank Draft ... duplicate Bank Draft
will obligatorily involve requirements such as no payment has been made
against the first Bank Draft, stop payment order to the Bank
payment cannot be
stopped. Had this been the law, O.P. would
not have written to its payee branch at Chennai to stop payment. Letter ... draft is issued payment
cannot be stopped and moreover the instructions for stopping the payment were
received after the draft was already encashed.
The perusal
Bank vide letter dated 21-03-1996
for stopping payment of the draft. In
spite of this the draft was encashed on the next date ... draft be got cancelled. O.P.3 had already
got the draft encashed before the complainant contacted the O.P. Bank for
stopping payment. Thus
respect to stop payment, opposite party No.3 has made payment as
per said Bank drafts to unreal payees who have practiced fraud. With such ... does not make
payment of draft directly to the payees or the holders of drafts and it pays
the amount of drafts through collecting Branch
unpaid by the
bank with the remarks payment stopped. The said payment is via bank draft
issued by the OP and therefore the payment there ... also
distinction between payment by way of cheques and drafts. Ordinarily when the drafts are prepared the
payment can be stopped at the initial stage
that the said draft is
stolen draft and they were instructed to stop the payment and therefore
accordingly memo was issued by respondent ... stopped payment only on the instruction of
respondent No.5 which they should not have stopped the payment. It appears that payment has been stopped
date of Tender of the demand draft would be date of payment for the duty. That the demand draft got accounted elsewhere ... draft. Once a draft is issued, the purchaser of the draft cannot in a normal situation ask the issuing Bank to stop payment
were lost, the complainants
sent written instruction to stop payment in respect of those Bank Drafts. But for reasons best known to the OP/Bank ... Bank got
written information as regards loss of Bank Drafts with a request to stop
payment, we do not find any tangible reason
