Description
Duty of a banker to act prudently at all times – property obtained fraudulently – no good title – mistake of fact – fraudulent transaction – denial of interest.
- A banker is expected to act prudently at all times, otherwise it is an assumption of risk on the part of the banker not to make inquires, before effecting payments.
- Property obtained fraudulently does not pass good title.
- Appellants received money from the respondent bank knowingly that it did not belong to them and that the money had been credited to their account as a result of some fraud played upon the respondent bank. The appellants knew that they had no good title to that money. The money paid to the appellants was made under a mistake of fact and the respondent is entitled to a refund.
- Bank was denied an award of a portion of interest on the principal amount to be refunded to it as a result of a fraudulent transaction since its employees participated in facilitating the fraud.
