Question 216. - A cheque on a suburban branch is sent through the clearing to the main office of the drawee bank and mailed to the branch the same night. Through a post office error the letter is sent to another town and is not received by the branch for five days. The cheque is returned dishonoured to the bank which originally cashed it, but that bank refused to accept it although notified that the letter containing it had gone astray. Who must bear the loss, the post office, the main office of the bank through which the cheque was cleared, or the bank which cashed it originally?

Answer. - Section 91 of the Bills of Exchange Act excises delay in making presentment for payment when the delay is caused by circumstances beyond the control of the holder and the error in the post office would come within that category.

The loss would require to be borne by the bank which originally cashed the cheque. The other banks were merely their agents for collection and appear to have followed the usual procedure and to have exercised ordinary care and diligence, which is all they are required to do.