(i) Gibbons vs. Westminster Bank A Housewife issued a cheque to a departmental store for purchases made by her.

When the cheque was presented by the departmental store, the banker negligently dishonored the cheque. When the account holder sued the bank, it was held that the bank must pay the cheque, dishonored negligently.
(ii) Davidson vs. Barclays Bank: Davidson is a book maker and he issued a cheque for 15sh-10d to a client as part of dividend. When the cheque was presented by the client, the banker, negligently dishonored it. Davidson sued the bank for negligence. The court observed that the bank by dishonoring the cheque with a paltry sum of {}{}{15sh10d has brought damage toe the reputation of the businessman. The smaller the amount of the cheque dishonored.


In this case, Raja opal was employed as a liaison officer by a group of companies at Delhi. He gave a cheque for Rest. 294.40 towards telephone charges to the telephone department. When the cheque was presented to Canada Bank, it was dishonored negligently. Consequently, the telephone line was disconnected for non-payment and the employers of I.V Raja opal dismissed him from service, taking it as his negligence.


Dishonoring a cheque is different from refusing payment on a cheque. Dishonour takes place when there is defect in the instrument or when there are insufficient funds in the accounts. Refusing payment of a cheque takes place on the happening of certain events. We can see the grounds under which a bank refuses payment.
(1) Countermanding of payment: When a customer after having issued the cheque to third party, instructs the banker to stop payment on the cheque before the instrument is presented, it is called countermanding of payment. It is the responsibility o f the customer to inform the banker before the payment is effected.
(2) Death of customer: Notice of death of customer has to be given by the close relative of the deceased. On receipt of the notice, banker will close the account and any cheque received thereafter, payment will be refused.
(3) Insolvency of the customer: When the court adjudged the customer of a bank as insolvent, the account of that customer will be taken over by an official assignee appointed by the court. Hence, any cheque received thereafter will be refused payment.
(4) Lunacy: When a customer is of unsound mind, hi‘ account cannot be operated. But the lunacy of the customer has to be certified by a doctor and the nature of the lunacy must also be stated. If it is of a temporary nature, the account may be suspended till such time the lunacy is cured. But when the lunacy is of a permanent nature, on the advice of the doctor, the account will lobe closed and cheques received thereafter will be refused payment.
(5) Garnishee order: Here, the court gives order to the bank to close the account of the customer partially or completely and according to that order cheques will be refused payment.
(6) Closing of account voluntarily: When the customer on his own accord, closes the account b y giving a written declaration, the bank will close the account. But, the customer has to surrender all the unused cheques and the passbook. The banker will close the account after arriving at the balance. The amount will be paid to the customer.
(7) Assigning the entire balance to a third party: When a customer gives in writing to the bank to assign his entire credit balance to a third parties‘ account, the bank will close the account automatically.
(8) Undesirable customer: When a customer issues cheques frequently with insufficient funds, these are dishonored causing embarrassment, both to the banker and customer. Such a customer will be intimated by the banker to close the account, failing which the banker on his own will close the account and will send the balance, if any, to the customer.
(9) Partnership firms, companies and institutions: Their account will be operated according to the bye-law. In the case of death of a partner, winding up of companies or dissolution of institutions, the account will be closed.
(10) In public interest: When a banker comes to know that the account holder is building an account by cheating the public, he may close the account by giving notice to the party. The bank does this in the interest of the public and prevents the public from incurring any monetary loss.


  1. Charles ddumba says:

    Thanks for the knowledge.

  2. I think this is among the most important info for me.
    And i am glad reading your article. But should remark
    on few general things, The website style is ideal, the articles is really nice : D.
    Good job, cheers

  3. It’s very trouble-free to find out any topic on net as compared to
    books, as I found this paragraph at this web page.

  4. I used to be recommended this web site via my cousin. I’m now not positive whether this put up is written through
    him as nobody else understand such particular about my problem.

    You’re amazing! Thanks!

  5. Appreciate the recommendation. Will try it out.

  6. I know this web page provides quality depending articles and
    additional information, is there any other web
    page which presents these kinds of things in quality?

  7. Amazing blog! Is your theme custom made or did you
    download it from somewhere? A design like yours with a few simple adjustements would really make my
    blog jump out. Please let me know where you
    got your theme. Thanks

  8. I have learn several just right stuff here. Certainly worth
    bookmarking for revisiting. I surprise how a lot effort you place to create any
    such wonderful informative website.

  9. I want to to thank you for this excellent read!! I certainly enjoyed every little bit of it.
    I have got you book marked to look at new things you post…

  10. Sweet blog! I found it while searching on Yahoo
    News. Do you have any suggestions on how to get listed in Yahoo News?

    I’ve been trying for a while but I never seem to get there!

    Appreciate it

  11. An outstanding share! I’ve just forwarded this onto a friend who was doing a little
    homework on this. And he actually ordered me
    lunch simply because I discovered it for him…
    lol. So let me reword this…. Thanks for the meal!! But yeah, thanks for spending the time
    to discuss this topic here on your site.

  12. Hi to every body, it’s my first visit of this weblog; this weblog contains awesome and genuinely fine information designed for visitors.

  13. I absolutely love your site.. Pleasant colors & theme. Did you make this site yourself?

    Please reply back as I’m attempting to create my own website and want to know where you got this from or exactly what
    the theme is called. Thank you!

  14. An impressive share! I have just forwarded this onto a friend who
    had been doing a little homework on this. And he actually bought
    me breakfast because I found it for him…
    lol. So allow me to reword this…. Thank YOU for the meal!!
    But yeah, thanx for spending some time to discuss this topic here on your website.

  15. Howdy I am so delighted I found your webpage, I really found you by accident, while I was browsing on Digg for something else, Nonetheless I
    am here now and would just like to say cheers for a fantastic post and a all round interesting blog (I also love the theme/design), I don’t have
    time to go through it all at the moment but I have book-marked it and also added your
    RSS feeds, so when I have time I will be back to read much more, Please do keep up the fantastic job.

  16. Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further post thanks once again.

  17. I enjoy what you guys tend to be up too. This
    sort of clever work and reporting! Keep up the superb works guys I’ve added you guys to

  18. I’ll immediately grasp your rss as I can’t to find your email subscription hyperlink or newsletter service.
    Do you have any? Kindly allow me recognize so that I may subscribe.

  19. Hello, all is going well here and ofcourse every one is sharing information, that’s genuinely good, keep up

  20. Hello would you mind letting me know which web host you’re using?
    I’ve loaded your blog in 3 different web browsers and I must say this
    blog loads a lot faster then most. Can you suggest a good internet hosting provider at a reasonable price?
    Cheers, I appreciate it!

  21. Excellent blog right here! Additionally your web site so much up fast!
    What web host are you the usage of? Can I am getting your
    affiliate link on your host? I wish my website loaded
    up as fast as yours lol

  22. I’ve been exploring for a little bit for any high-quality articles or weblog posts on this sort of space . Exploring in Yahoo I ultimately stumbled upon this site. Reading this info So i’m satisfied to exhibit that I’ve a very excellent uncanny feeling I discovered just what I needed. I such a lot without a doubt will make sure to don’t fail to remember this website and give it a glance on a continuing basis.

  23. Cool blog! Is your theme custom made or did you download it
    from somewhere? A theme like yours with a few simple adjustements would really make my
    blog shine. Please let me know where you
    got your theme. With thanks

  24. I’m gone to say to my little brother, that he should also go to see this website on regular basis to take updated from
    latest gossip.

  25. My spouse and I stumbled over here from a different web page and thought I should check things out.
    I like what I see so now i’m following you. Look forward to finding out about your web page
    for a second time.

  26. Thanks for all your hard work on this web site. Gloria delights in engaging in research and it’s really simple to grasp why. We all notice all about the powerful mode you offer vital tips through your website and as well attract response from some other people on this situation plus our girl is really becoming educated a great deal. Take pleasure in the remaining portion of the new year. You are carrying out a very good job.

  27. We are a group of volunteers and opening a new scheme in our community.
    Your site offered us with valuable info to work on. You’ve performed
    a formidable job and our whole neighborhood might be
    thankful to you.

  28. WOW just what I was searching for. Came here by searching for instagram takipçi satın al

  29. Its such as you learn my mind! You appear to understand so much approximately this, like you wrote the ebook in it or something.
    I feel that you simply could do with a few percent to power the message house a little bit,
    however other than that, that is magnificent blog. An excellent read.
    I’ll certainly be back.

  30. asmr their says:

    This is the right web site for anyone who hopes
    to understand this topic. You realize a whole lot its almost hard to argue
    with you (not that I actually will need to…HaHa).
    You certainly put a new spin on a subject which has been written about for decades.
    Wonderful stuff, just wonderful!

  31. Good post! We are linking to this particularly great article on our website.
    Keep up the great writing.

  32. Thanks for sharing your info. I truly appreciate your efforts and I will
    be waiting for your further post thanks once again.

  33. asmr my says:

    My spouse and I stumbled over here from a different page and thought I should check things out.

    I like what I see so now i’m following you. Look forward
    to finding out about your web page yet again.

  34. Pretty section of content. I just stumbled upon your weblog and in accession capital
    to assert that I acquire in fact enjoyed account your blog posts.
    Any way I’ll be subscribing to your augment and even I achievement you access consistently quickly.

  35. Excellent goods from you, man. I’ve understand your stuff previous to and you’re just
    extremely wonderful. I actually like what
    you have acquired here, certainly like what you’re saying and the
    way in which you say it. You make it enjoyable and you still take care of to keep it sensible.
    I can not wait to read much more from you. This is actually a wonderful web site.

  36. says:

    My developer is trying to convince me to move
    to .net from PHP. I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using Movable-type on a number of
    websites for about a year and am nervous about switching to another platform.
    I have heard very good things about Is there a
    way I can import all my wordpress posts into it? Any kind of help would be really appreciated!
    scoliosis surgery scoliosis surgery

  37. Hi! I could have sworn I’ve been to this website before but
    after looking at many of the articles I realized it’s new to me.
    Anyhow, I’m certainly pleased I discovered it and I’ll be book-marking it and checking back frequently!

    quest bars quest bars

  38. Hello, everything is going perfectly here and ofcourse every one is
    sharing information, that’s in fact excellent, keep
    up writing. ps4 ps4

  39. I have been surfing on-line greater than three hours these days, but I never discovered any fascinating article like yours. It?¦s lovely worth sufficient for me. Personally, if all website owners and bloggers made good content material as you probably did, the net can be much more helpful than ever before.

  40. We are a gaggle of volunteers and opening a new scheme in our community. Your website provided us with useful info to work on. You’ve performed a formidable task and our entire community will likely be thankful to you.

  41. Hello, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam feedback?
    If so how do you stop it, any plugin or anything you can suggest?

    I get so much lately it’s driving me mad so any help is very much appreciated.

    cheap flights cheap flights

  42. You really make it seem so easy with your presentation but I find this matter
    to be really something which I think I would never understand.

    It seems too complex and very broad for me. I am looking forward for your next post,
    I will try to get the hang of it!

  43. Appreciating the dedication you put into your blog and detailed information you provide. It’s great to come across a blog every once in a while that isn’t the same unwanted rehashed material. Wonderful read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.

  44. says:

    Spot on with this write-up, I absolutely believe that this website needs a lot more attention. I’ll probably be returning to
    read through more, thanks for the information! scoliosis surgery scoliosis surgery

  45. It’s genuinely very complex in this busy life to listen news on TV, so I only
    use web for that reason, and obtain the most recent information.

  46. Hi! Quick question that’s completely off topic. Do
    you know how to make your site mobile friendly? My blog looks weird when viewing from
    my iphone. I’m trying to find a template or plugin that might be
    able to fix this issue. If you have any suggestions, please
    share. With thanks!

  47. Hi there, I wish for to subscribe for this weblog to obtain most recent updates, so where can i
    do it please help out.

  48. We’re a gaggle of volunteers and starting a new scheme in our community.
    Your site provided us with useful information to work on. You’ve done
    an impressive activity and our whole community might be thankful to you.

  49. This really answered my problem, thank you!

  50. You should take part in a contest for one of the best blogs on the web. I will recommend this site!

  51. There is noticeably a bundle to know about this. I assume you made certain nice points in features also.

Leave a Reply

Your email address will not be published. Required fields are marked *