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    Sunny Agarwal
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    This document contains two case studies related to banking and insurance: 1. A demand promissory note drawn in 1986 was presented for payment 25 years later. The note holder argued it expired after 3 years and the payment could be denied. 2. An official liquidator of a company drew an uncrossed cheque from the company's account for Rs. 50,000, exceeding the Rs. 49,999 limit for uncrossed cheques. The banker could be sued by creditors for wrongful payment since the cheque amount was over the limit.

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    This document contains two case studies related to banking and insurance: 1. A demand promissory note drawn in 1986 was presented for payment 25 years later. The note holder argued it expired after 3 years and the payment could be denied. 2. An official liquidator of a company drew an uncrossed cheque from the company's account for Rs. 50,000, exceeding the Rs. 49,999 limit for uncrossed cheques. The banker could be sued by creditors for wrongful payment since the cheque amount was over the limit.

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    9 views6 pages

    Case Studies: Banking and Insurance

    Uploaded by

    Sunny Agarwal
    This document contains two case studies related to banking and insurance: 1. A demand promissory note drawn in 1986 was presented for payment 25 years later. The note holder argued it expired after 3 years and the payment could be denied. 2. An official liquidator of a company drew an uncrossed cheque from the company's account for Rs. 50,000, exceeding the Rs. 49,999 limit for uncrossed cheques. The banker could be sued by creditors for wrongful payment since the cheque amount was over the limit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    CASE STUDIES

    BBM

    BANKING AND INSURANCE

    CASE 1

    A Draws a demand promissory note in favour of B on 15.6.1986. The same was endorsed by B in favor of one Mr. C, who presents the note for payment after twenty five years. Can A deny the payment asking the defense that it is presented for payment after such a long delay?

    SOLUTION

    A demand promissory note is a note which can be presented for payment anytime by the holder of the instrument. But it has a limit. The limit for a demand promissory note to be presented for payment is 3 yrs after which it has no value. In this case the demand promissory note is presented for payment after 3 yrs. Therefore it is of no value as it has expired. Hence, A can deny the payment.

    CASE 2

    A is appointed as an official liquidator of ABC limited which went into liquidation. Now A has an uncrossed cheque drawn in his official capacity for Rs. 50,000. The same cheque was enchased by A across the counter by signing on the back of the cheque. Is the banker protected against the creditors of the company for making wrong payment, if sued by them?

    SOLUTION

    An uncrossed cheque is a cheque which can be enchased over the counter of the bank. It is an unprotected form of cheque and can be drawn by the holder by signing on the back of the cheque. But there is a limit to the amount of the cheque. The cheque cannot exceed the amount of Rs 49,999.In the case the amount mentioned in the cheque is Rs 50,000 so the banker can be sued for accepting and enchasing the cheque.

    Presented by Ankush Agarwal 0911005 V1 BBM-A

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