https://www.taxtmi.com/caselaws?id=370956 Section 131 of the Negotiable Instruments Act protects a collecting bank that receives payment on a crossed cheque in good faith and without negligence; on the facts, the bank processed the altered cheque through normal banking channels and had no reason to suspect tampering when credit was made, so the statutory protection applied. Because the mistaken credit arose from an altered instrument later found to be invalid, the customer could not retain the benefit of the payment, and restitution was required. The court found no material showing lack of due diligence or ordinary care by the bank, and unjust enrichment supported recovery of the credited sum from the customer. en-us Tue, 16 Oct 2018 00:00:00 +0530 Tue, 27 Nov 2018 06:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=370956 Section 131 of the Negotiable Instruments Act protects a collecting bank that receives payment on a crossed cheque in good faith and without negligence; on the facts, the bank processed the altered cheque through normal banking channels and had no reason to suspect tampering when credit was made, so the statutory protection applied. Because the mistaken credit arose from an altered instrument later found to be invalid, the customer could not retain the benefit of the payment, and restitution was required. The court found no material showing lack of due diligence or ordinary care by the bank, and unjust enrichment supported recovery of the credited sum from the customer. Case-Laws Indian Laws Tue, 16 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=370956