Commissioner of Taxation Vs English, Scottish and Australian Bank Ltd
…the test of negligence is whether the transaction of paying in any given cheque [coupled with the circumstances antecedent and present] was so out of the ordinary course that it ought to have aroused doubts in the bankers’ mind, and caused them to make inquiry.
Related Cases / Recent Cases / Case Law
- Great Western Railway Vs London and County Banking Co: Bank en-cashes cheques of a person for a period of 20 years even though the person has no account with it.
- Ladbroke and Co Vs Todd (30 TLR) 1914 (433): Relationship between banker and customer begins as soon as a cheque is paid in and accepted for collection and not merely it is paid.
- Cheques and Payment Orders Act 1986
- Financial Transactions Reports Act 1988