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CCP504 (B)
CCP504 (B)
CCP504 (B)
ANDHRA PRADESH.
Branch : D.C.C.P.
Institute : S.R.R.S. Govt. Polytechnic, Sircilla,
Karimnagar District
Year/Semester : V Semester
Subject : Banking – I
Subject Code : CCP- 504(B)
Topic : Negotiable Instrument Act
Duration : 50 Minutes
Sub-Topic : Legal provisions in case of dishonour of
cheques
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Teaching Aids : PPT
Objectives
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1. State in which circumstance the
Banker`s honours the cheques?
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Recap
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Dishonor a cheque - companensahon
Amount of Compensation:
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Dishonor a cheque - companensation
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Dishonor a cheque - compensation
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Compensation for Dishonour:
When a negotiable instrument is dishonoured, any
party liable to the holder will have to pay
compensation.
The compensation has to be computed
according to the rules laid down by section
117 which are as follows:
The holder is entitled to the amount due upon the
instrument, together with the expenses properly
incurred in presenting, noting and protesting it
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Compensation
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Compensation
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Compensation
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Compensation
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Compensation
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When can a Banker dishonour the cheque
Dishonour of cheques:
A banker can dishonour cheques under the
following circumstances for which the banker
need not necessary to have legal provisions.
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Circumstances
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Cheque dishonour – Banker`s duty
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Cheque dishonour – Banker`s duty
Winding up of a company.
Insanity of a customer.
Garnishee or other order.
Notice of assignment of credit balance.
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Cheque dishonour – Banker`s duty
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Summary
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Quiz
When can a Bankers honour the cheque
2. When receives the notice to customer's death
3. Notice or insolvency or a customer.
4. Un-satisfy to a customer
5. When there is sufficient balance and cheque
is presented with all formalities.
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