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Saturday, August 14, 2010

Obliterating a Crossing

Section -89 provides protection to a collecting banker of a cheque whose crossing is obliterated or erased by dishonest persons. Inc case of such cheques the paying bank shall be discharged from its liability if:
(i) the cheque does not appear to be a crossed one or obliteration of crossing is not apparent at the time of its presentation for payment and
(ii) the payment has been made in due course as required under section -10.

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