DISHONOURED CHEQUES.

Auckland Star, Volume LIII, Issue 230, 28 September 1922, Page 4

DISHONOURED CHEQUES.

ACTION AGAINST A BANK. COMMENT BY JUDGE. (By Ti iegrapb.- Owu Correspondent.) I HAMILTON, this day. I An important judgment was delivered jby Mr. Justice Stringer tcnciay in a ease ; concerning banking rightl- in which ; Alfred Classon Bell, farmer, of Kiwitahi, ! sued the Union Bank of Australia, Ltd. i'or damages, alleging that the bank wrongfully dishonoured certain cheques i which had been drawn on it by its cueI tamer, plaintiff. The question at issue I was whether the bank had rightly paid I a promissory note made by plaintiff in ! favour of one Sergei for CI 19 19/10, and payable at defendant's bank. His Honor said it seemed clear, both Jon authority and principle, that the j bank was at liberty to apply whatever j funds of plaintiff it had in hand in satisfaction, pro tanto. of the note of which ;it was the holder for value. . Plaintiff. 'no doubt, in launching the action. J assumed that Sergei still remained the holder of the note, and. having arranged 1 with him for time to pay, quit* naturally I supposed that £100 which he paid to i his credit with the bank in April would ;be available to draw against. If $ergel . had l>een the legal holder of the note it ; would have been necessary to determine whether a bank, apart from its leo-al I rights as holder for value, could proi P er, y pay a customer's promissory note ; after its due date without first obtaining the express authority of the customer to ;do so. His Honor added: "I think plaini tiff was not treated quite fairly by the bank in connection with the pavme'nt of this note. The bank manager had ' TC ™* ed . t° continue accommodation which he had previously granted to plaintiff: he must, therefore, have known ;or suspected and certainly could have .-.scertamod by reference 'to plaintiff that the latter wished to apply the CIOO nlli T-T : S T ial PUrpose - " To allow . plaintiff Without warning him a« to the '" ga . P«'tion to pay . into credit, and then to appropriate it towards payment of a long overdue note to thoJ ff c V hP intGrP?U ° f t,,e hank to those of its customer who confided