Bank – Bank Cheque – Right of Drawer to Countermand – Onerous Indorsee – Bill of Exchange
M. drew a cheque on the Bank of Scotland in favour of C., for C.’s accommodation, to enable him to reduce an overdraft on his account with the Clydesdale Bank. C. paid the cheque into his account, and it was placed to his credit, and the overdraft pro tanto reduced. Two days thereafter M. instructed the Bank of Scotland not to pay the cheque.
Held: (aff. judgment of First Division) that the cheque having been given and used for the purpose of reducing C.’s overdraft with the Clydesdale Bank, M. was not entitled, in a question with that bank, to stop payment of it, and was therefore liable to make good its amount to that bank.
Citations:
[1883] UKHL 140, 21 SLR 140
Links:
Jurisdiction:
Scotland
Banking
Updated: 28 June 2022; Ref: scu.636769