Dhan Bank Ltd. erroneously credits the account of a customer. Explain the legal position in the following situations: (b) The liability of the banker, if the customer has issued a cheque based on the entry and balance in

Facts of the Case: Dhan Bank Ltd. erroneously credits the amount to a Customer's account. Related provisions: The fact that an entry is made in the account and is reflected in the passbook or statement does not give the right to the customer to the money reflected in the pass book or statement. In case the customer uses the amount wrongly credited, he will not get any title to the amount wrongly credited and is under the obligation to return the same. Similarly, if the banker wrongly debits any amount to the customer's account, the bank is under an obligation to rectify the error by crediting the amount to the customer's account. Thus, the banker has a right to reverse the incorrect debit/credit entry without recourse to the client. Considering the above: (b) In case a cheque is presented to the banker for payment, the banker has full right to return the said cheque. The customer whose account was wrongly credited and whose cheque was returned would have no recourse against the banker. The said customer cannot claim damages for the return of the cheque even if he proves that he has acted in good faith relying on the credit of the amount and balance reflected in the passbook or statement.