https://www.taxtmi.com/caselaws?id=290930 A banker is protected from conversion liability for a cheque with defective title where it acts in good faith and without negligence in the ordinary course of business. The decisive inquiry is whether reasonable care was taken before the proceeds were paid out to the customer, assessed by reference to the circumstances known at the time. The bank was entitled to rely on an apparently trustworthy referee, and it was not negligent merely because further inquiries might later have seemed possible. Clearance of the cheque before the reference was received did not defeat the statutory protection on these facts, because the evidence showed compliance with the banker's statutory standard. en-us Thu, 21 Mar 1968 00:00:00 +0530 Thu, 22 Oct 2020 11:00:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290930 A banker is protected from conversion liability for a cheque with defective title where it acts in good faith and without negligence in the ordinary course of business. The decisive inquiry is whether reasonable care was taken before the proceeds were paid out to the customer, assessed by reference to the circumstances known at the time. The bank was entitled to rely on an apparently trustworthy referee, and it was not negligent merely because further inquiries might later have seemed possible. Clearance of the cheque before the reference was received did not defeat the statutory protection on these facts, because the evidence showed compliance with the banker's statutory standard. Case-Laws Indian Laws Thu, 21 Mar 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290930