This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 553.— A customer's account shows a debit entry outstanding for seven years. Assuming it to be a marked cheque, has the obligation of the bank to pay it ceased under the Statute of Limitations? The customer claims that the amount should be credited back to his account. What is the proper course to pursue?
Answer—While the bank could not be sued on a marked or accepted cheque after the period mentioned, it would nevertheless be contrary to the usual practice of banks to take advantage of this defence. We think, therefore, that unless it can be established that the cheque never passed out of the drawer's hands, he should not have the amount refunded to him. If he passed the cheque away and got value for it, he clearly has no further interest. He has no right to insist on the bank sheltering itself behind the Statute of Limitations, and it is also to be remembered that something may have happened to interrupt prescription of which the record has been lost, e.g., the holder may have written to the bank asking if the marking still held good, and may have had such a reply as would establish a new date from which the statute runs.