Negotiable Instruments Act Section 77 — Liability of banker for negligently dealing with bill presented for payment

CHAPTER IV OF NEGOTIATION

General

Summary

If a bill of exchange has been accepted to be paid at a particular bank, and it is properly presented there for payment but is not paid, the bank may be held responsible. This happens if the bank’s careless or improper handling, keeping, or returning of the bill causes the person holding it to suffer a financial loss. In that case, the bank must pay compensation to the holder for the loss caused by its negligence.

Official Text

When a bill of exchange, accepted payable at a specified bank, has been duly presented there for payment and dishonoured, if the banker so negligently or improperly keeps, deals with or delivers back such bill as to cause loss to the holder, he must compensate the holder for such loss.