Multiple choice

Mr. Ashok Kumar issues a power of attorney in favour of Mr. Amit Kumar in July 31, 2012 and dies on December 03, 2012. Your branch receives (on Dec 26, 2012) through clearing house, two cheques, one of which is signed by Mr. Ashok Kumar, on Dec 12, 2012. Which cheque will be paid?

  1. Both the cheques will be paid, if there is balance in the account.

  2. Both the cheques will be returned.

  3. Cheques signed by Mr. Ashok Kumar will be paid as the cheques were signed before death.

  4. Cheques signed by Mr. Amit Kumar will be paid, as he is alive.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Both the cheques will be returned because Mr. Ashok Kumar died on December 03, 2012 and the cheque is signed on December 12, 2012. Therefore, it can be a fraud case.

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