- Flynote
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A bank which is aware that funds deposited by a third party into its
client’s bank account to which the client has no legitimate claim may not appropriate
such funds on the premise that the client has a claim to the funds and use them by
way of set off to discharge the client’s debt to the bank – A bank which is aware that
a third party has deposited funds into its client’s bank account and is aware that the
client has no legitimate claim to the funds is under a duty to take steps to prevent
harm to the third party by way of the misappropriation of those funds by its client –
the bank’s failure to prevent harm to the third party renders it a co-wrongdoer with
the client for the theft.
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Cited documents 3
Judgment 2
Legislation 1
1. | Prescription Act, 1969 | 508 citations |