IF A BANK DISHONOUR YOUR CHEQUE ILLEGALLY, YOU CAN ASK FOR COMPENSATION FROM THE BANK FOR ALL THE LOSSES WHICH YOU FACE BECAUSE OF SUCH DISHONOUR: THAT’S WHAT MADRAS HIGH COURT HELD IN “CANARA BANK VS I.V. RAJAGOPAL”
Contracts are sacrosanct and that is the reason why we keep so much money in the Banks even though it offers dirt cheap interest rates (currently Banks only offer around 7 % of Fixed Deposits, that too if you deposit money for more than One year, which is not even enough to beat inflation let alone giving some savings to a customer) therefore it is the duty of the Banks also to deal with the Customers with utmost honesty and diligence.