— Part
III.
Businhjss of Banking.
591
the usual time of an agent for giving notice of dishonour (d), but it in preference to a debt due to itself from the drawing
must pay
Sect.
3.
Collection of Cheques.
customer (e) If the banker
failure to
after
present,
.
fail to present the cheque within the allotted time reaches him, he is liable to his customer for loss arising from the delay (/). The indorsers, if any, are discharged (g), and the drawer is discharged to the extent of any actual damage he may have suffered by the failure of the bank on which the cheque was drawn subsequent to the time when the cheque should have been presented {h). it
1210. If a cheque be dishonoured on presentment, the banker can Notice of debit the customer's account with the amount (i)He must give dishonour, due notice of dishonour (k) either to the parties liable on the cheque, The latter is the usual course. Keturn of or to his customer (/). the cheque to the customer is deemed sufficient notice of dishonour, Branches of the same bank if the customer have indorsed it(m). are held to be separate persons for the transmission of notice of dishonour (n). A bank may apparently give notice of dishonour by telegram (o). ^^ here a cheque drawn by one customer of a bank is paid in for collection by another customer, and there are not sufficient funds to meet it, the banker still has till the next day in which to return it (p). Where a cheque is sent by post to a bank in the dual capacity of agent for collection and paying bank, it is bound to return it the next day after receipt, if unpaid {q). 1211. Where cheques are collected, the banker has a reasonable When cheque time, consistent with ordinary book-keeping, in which to pass the ^^^inst^^^^^ ^^^^^ proceeds to current account before they are available for drawing against (?•) Where uncrossed cheques are credited as cash prior to .
(1834), 2 A. & E. 184. Williams (1822), 5 B. & Aid. 815. (/) Lubbock V. Tribe (1838), 3 M. & W. 607, per Lord Abinger, C.B., at
Emmerson
(d)
Boyd
(e)
Kilshij V.
V.
p. 612. (g)
Bills of
(li)
Ibid.,
bill
under
s.
Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 45. 74, differentiating drawer of cheque from drawer
of
an ordinary
sect. 45.
(i) The universal custom of bankers, apparently recognised l)y Lord Lindley in Capital and Counties Bank v. Gordon, [1903] A. C. 240, at p. 248 ; Ee Mills, Bawtree (h Co., Ex parte Stannard (1892), 10 Morr. 193. (k) For the general rules relating to notice of dishonour, see title Bills op Exchange etc. (l) Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), s. 49 (13). (m) Ibid., s. 49 (6). The section does not appear to cover the case of a bearer
cheque. (n) Clode v. Bayleij (1843), 12 M, & W. 51 Prince v. Oriental Bank Corporation (1878), 3 App. Cas. 325 ; Fielding v. Corry, [1898] 1 Q. B. 268. (o) Fielding v. Corry, supra, per A. L. Smith, L.J., at p. 271. {p) See Boyd v. Emmerson (1834), 2 A. & E. 184. (g) There is no direct legal authority for this proposition, but it represents the accepted practice of bankers. The case of a cheque sent for payment through the country clearing, which must be returned direct, if unpaid, by the next post, must be distinguished. Compare Parr's Bank, Ltd. v. Ashby (1898), 14 T. L. R. 563. (r) Marzetti v. Williams (1830), 1 B. & Ad. 415.
