FINE BANKING POINT.

Manawatu Herald, Volume XLV, Issue 2621, 18 August 1923, Page 2

FINE BANKING POINT.

NATIONAL BANK V. JOHN HOLDER. MAGISTRATE'S RESERVED DECISION. At the local S.M. Court on the HOtli June last, the National Bank of New Zealand Ltd., proceeded against John Colder of Foxton, jeweller, for recovery of the sum of €2l (i/9, the amount of a cheque issued hy the defendant to “Joe '.very" and crossed “Bank.” Before Avery had paid the cheque into his account with the plaintiff, the defendant telegraphed Avery that he had stopped payment. 'l’he cheque was payable to “Joe Avery” or order and was endorsed “J. J. Avery” when paid into Avery’s credit in the plaintiff hank. The cheque was relumed hy defendant's hankers at Foxton marked “Payment, stopped, endorsement irregular." The plaintiff hank then got in touch with Avery and had the cheque again endorsed “Joe Avery" and presented if to defendant’s hankers who again returned it “payment stopped.” In the meantime the plaintiff had advanced Avery Cl 9 19/9 against, the cheque. Legal argument as previously reported was addressed by Mr Cooke for plaintiff and Mr Bergin for defendant. The S.M. reserved his decision which was delivered yesterday and is as follows: —

“In this action the plaintiff is slicing the defendant on a dishonoured cheque—payment of which was stopped on presentation after the Bank had as they were entitled to do (see 2 Halsbu’ry, p. 498. s. 845 and McLean v. Clydsdale Bank 9 A.C. 99) made advances against it to their customer to the extent of £l9. The actual amount owing to the Bank is £l9 10s 9d. In my opinion the hank were holders for value and as such entitled to sue upon the cheque after its dishonour on presentation. It is suggested that because the first endorsement on the cheque was irregular that the Bank’s claim must fail but defendant admitted that Joe Avery is .T. J. Avery and that the endorsements were in the handwriting of Joe Avery, and the case of Leonard v. Wilson 3 L..T. Ex. 171 shows that an irregular endorsement can he cured and the cheque re-presented. “Judgment will he for the plaintiff for £l9 10s 9d and costs £7 17s.