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Bank Accountable for Failure to timely Re-present Cheque

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On 29.5.2018, the respondent deposited two CTS cheques dated 3.3.2018 in her savings account.  The validity was till 2.6.2018.

The said cheques presented on 29.5.2018 were returned on 30.5.2018 for “Bank Strike”.  According to the Bank, the cheques were returned on 1.6.2018.

Reasonable Time for presentation of cheque for acceptance or payment excludes the public holidays.

If there is a delay in presentment for acceptance or payment of the cheque such a delay would be excused under Section 75A, if it is caused by circumstances beyond the control of the holder and not imputable to his default, negligence or misconduct. But the moment the cause of delay ceases to operate, the presentment must be made within a reasonable time provided in Sections 84(2) and 105 of NI Act.

Insofar as the present case is concerned, we have already noted that there is no explanation at all, not to speak of any reasonable explanation, as to why the two cheques of the respondent were not represented by the appellant before the drawer’s bank on 01.06.2018 and 02.06.2018, knowing fully well that the validity of the two cheques was only till 02.06.2018.

Insofar as the present case is concerned, the delay in presentment of the cheques was caused because of the strike in the bank which was beyond the control of the appellant. There was no default or negligence on the part of the appellant. In such a case, Section 75A of the Negotiable Instruments Act, 1881 would be attracted.

A bank receiving cheques for collection acts as an agent of the customer and is under an obligation to exercise due diligence in presenting the instruments within the prescribed validity period. Failure to do so resulting in the instrument becoming stale, in the absence of any reasonable explanation, would result in negligence in the discharge of banking duties which would constitute deficiency in rendering service within the meaning of the consumer protection law.

Judgment dated 15.4.2026 of the Supreme Court of India in Civil Appeal No.2587 of 2025 of Canara Bank Vs. Kavita Chowdhary

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