Karnataka High Court Rules Manual Endorsement Verification Unnecessary in Cheque Bounce Cases
The Karnataka High Court has delivered a significant ruling stating that manual verification of a bank's endorsement on a dishonoured cheque is not required in cheque bounce cases. A bench led by Justice V. Srishananda pronounced this important verdict, clarifying a long-standing procedural aspect in financial disputes.
The court elaborated that with the implementation of the Electronic Clearance System (ECS), the necessity for manual verification or intervention has been dispensed with. Therefore, a bank's endorsement, even without the specific seal or signature of a bank branch officer, is legally valid under the law.
This means that an endorsement of a dishonoured cheque, even if it lacks the official bank seal and signature, can be considered valid evidence in cases filed under the Negotiable Instruments Act. This decision aims to streamline the process for cheque bounce litigations by reducing procedural hurdles.
Source: CourtBeat News (Kannada)
