Eskom v First National Bank of Southern Africa Ltd. (380/93)
Eskom v First National Bank of Southern Africa Ltd. (380/93) [1994] ZASCA 186; 1995 (2) SA 386 (AD); [1995] 2 All SA 65 (A) (30 November 1994)
The court held that section 79 of the Bills of Exchange Act provides statutory protection to bankers who pay crossed cheques in good faith and without negligence, and that the onus of proving such good faith and absence of negligence lies on the bank, not the customer. The section operates as a statutory exception to the banker's normal liability, and its application must be established by the bank. The court further held that section 79 applies even where the collecting and paying branches are part of the same bank, following English and South African authority for practical and commercial r…
Source excerpt
- Bills Of Exchange Act
- Crossed Cheques
- Banker Customer Relationship
- Onus Of Proof
- Statutory Protection
- Non Transferable Cheques