Question 374. A cheque for $9 is paid through the clearing, but drawee bank dishonours same without protest, on the ground that maker has no account, but unintentionally stamps "Paid" and cancels signature. Cheque is marked "cancelled in error" and debited back through the clearing, but the holding bank refuses to accept it because the signature is cancelled. Is the drawee bank obliged to pay the cheque?

Answer. - The reason given is not sufficient of itself to warrant the refusal of the bank sending the cheque through the clearing to take it back when tendered to it by the drawee bank.