Question 391. - In case a bank pays a raised cheque, who is liable for the loss? (a) Can the bank charge amount paid to their customers' account, or (b) can they recover from the bank to which they paid it, or (c) from payee, who is a minor?

Answer. - The bank can only charge its customer with the original amount of the cheque, unless in drawing it he has neglected to take reasonable and ordinary precautions against forgery. It was held by the House of Lords in Macmillan v. London Joint Stock Bank, that if, owing to the neglect of such precautions, it is put into the power of any dishonest person to increase the amount by forgery, the customer must bear the loss as between himself and the banker. (b) Yes - (c) Yes, and they can take criminal action if he did the raising.