https://www.taxtmi.com/caselaws?id=389749 Demand drafts prepared on stolen draft leaves were held to be void instruments that could not create a valid credit in favour of the recipients or fasten liability on the bank merely because they had been honoured on presentation. The Court rejected reliance on Section 72 of the Indian Contract Act and applied the rule reflected in Section 118 of the Negotiable Instruments Act, treating bona fide acceptance of a forged instrument as incapable of legalising it once fraud was discovered. The sums paid on such drafts were recoverable as a debt under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, so the bank's recovery claim was maintainable and the challenge to the recovery orders failed. en-us Tue, 22 Oct 2019 00:00:00 +0530 Mon, 16 Dec 2019 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389749 Demand drafts prepared on stolen draft leaves were held to be void instruments that could not create a valid credit in favour of the recipients or fasten liability on the bank merely because they had been honoured on presentation. The Court rejected reliance on Section 72 of the Indian Contract Act and applied the rule reflected in Section 118 of the Negotiable Instruments Act, treating bona fide acceptance of a forged instrument as incapable of legalising it once fraud was discovered. The sums paid on such drafts were recoverable as a debt under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, so the bank's recovery claim was maintainable and the challenge to the recovery orders failed. Case-Laws Indian Laws Tue, 22 Oct 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389749