Q: Elaborate the citation of Canara Bank vs Canara Sales Corporation & Ors ?

Ans: In this citation, the issue of cheques with fraudulent signatures being presented for cash in bank and was investigated by the honourable Supreme Court.

It was decided that a bank is not legally obligated to render any kind of payment in response to a cheque that is presented for encashment but also bears forgeries. It would be assumed that the bank has broken the law if bank debits the client for the amount of the cheque and makes any payment in favor of such cheques.

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