Court of Common Pleas Division (England)

Charles v Blackwell

(1877) 2 CPD 15118771 min read
The case in brief30-second read
Facts
A cheque payable to order was paid by the drawee bank on an endorsement of the payee that was not genuine.
Issue
Whether the paying banker was protected despite the forged endorsement.
Held
Under S.19 of the Stamp Act, 1853, a banker on whom a cheque payable to order on demand is drawn, and who pays it when it purports to be endorsed by the payee, is protected even though the endorsement was forged. The case is cited in India as illustrating the rule now in S.85(1) of the NI Act.
Principle
A paying banker is protected against a forged endorsement on an order cheque that purports to be the payee's.
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Facts

  • A cheque payable to order was paid by the drawee bank on an endorsement of the payee that was not genuine.

Issue

  1. Whether the paying banker was protected despite the forged endorsement.

Held

  • Under S.19 of the Stamp Act, 1853, a banker on whom a cheque payable to order on demand is drawn, and who pays it when it purports to be endorsed by the payee, is protected even though the endorsement was forged. The case is cited in India as illustrating the rule now in S.85(1) of the NI Act.

Ratio decidendi

Under S.19 of the Stamp Act, 1853, a banker who pays an order cheque on demand that purports to be endorsed by the payee is protected even though the endorsement is forged. The protection turns on the endorsement purporting to be the payee's.

Exam use

How to use it in an answer

Use with S.85(1) of the NI Act for questions on forged endorsements. Key line: "The protection covers a forged endorsement that purports to be the payee's; it does not cover a forged signature of the drawer."

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Citation

Charles v Blackwell (1877) 2 CPD 151

Reported: English report (1877) 2 CPD 151; not available on sci.gov.in or Indian Kanoon. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.