https://www.taxtmi.com/caselaws?id=179577 Collecting-bank liability for conversion arises where cheque proceeds belonging to the true owner are collected and credited to an account operated in a false name. Statutory protection requires the bank to prove good faith and absence of negligence, including in opening and operating the account; negligence defeats that protection. However, the true owner may be estopped from recovery where its own negligent issuance of cheques is the proximate cause of the loss, notwithstanding the bank's conversion. Claims of this nature may devolve on the Union of India and benefit from the special limitation period for Central Government suits. Interest may be refused where the bank did not retain the proceeds and the owner's negligence caused the loss. en-us Thu, 22 Jan 1976 00:00:00 +0530 Fri, 04 Mar 2016 14:57:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179577 Collecting-bank liability for conversion arises where cheque proceeds belonging to the true owner are collected and credited to an account operated in a false name. Statutory protection requires the bank to prove good faith and absence of negligence, including in opening and operating the account; negligence defeats that protection. However, the true owner may be estopped from recovery where its own negligent issuance of cheques is the proximate cause of the loss, notwithstanding the bank's conversion. Claims of this nature may devolve on the Union of India and benefit from the special limitation period for Central Government suits. Interest may be refused where the bank did not retain the proceeds and the owner's negligence caused the loss. Case-Laws Companies Law Thu, 22 Jan 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179577