A pass book is a record of a customer's bank account that is maintained by the bank. It displays deposits credited to the account on the right side and debits for payments from the account on the left side. According to case law, the pass book constitutes the official record of transactions between the bank and customer if it is examined regularly by the customer. A wrong entry favorable to the customer only constitutes a settled account if the customer believes it is true and acts on it in good faith, such as by writing checks based on the incorrect higher balance. However, a customer cannot rely on entries made by a bank employee that are fictional.

1. PASS BOOK A pass book is a booklet wherein a banker records his customer’s account as it appears in his ledger.

2. A pass book is maintained in the form of a ledger account with debit entries on the left hand side and credit entries on the right hand side. All the amounts deposited by a customer are credited and the cheques paid by banks against his account are debited.

4. Is pass book is an authentic record? According to Sir John Paget “The proper function of pass book is to constitute a conclusive and unquestionable record of transactions between the banker and customer and it should be recognised as such”

5. THE SITUATION IN AMERICA THE POSITION IN INDIA Correct Entry Wrong Entry Entries Favourable to the customer Entries Favourable to the Banker

6. Entries Favourable to the Customer Can a customer rely upon a wrong entry favourable to him? CASE LAW “ SKYRING VS GREENWOOD” “ UNITED OVERSEAS BANK VS JIWANI A/C” “ HOLAND VS MANCHESTER LIVER POOL DISTRICT BANKING COMPANY”

7. The wrong entry favourable to a customer constitutes a settlement of account only when. The customer believes that it is true, The customer draws a cheque in good faith and in complete reliance on the larger credit balance The wrong entry is communicated to the customer In any case a customer can not rely upon the fictitious entry made in pass book by a bank employee.

8. ENTRIES FAVOURABLE TO THE BANKER Can a banker rely upon a wrong entry favourable to him? CASE LAW “VAGLIANO BROTHERS VS BANK OF ENGLAND”

9. Longer the duration, lesser the chances of rectifying a mistake in a pass book A pass book belongs to a banker There is a statutory duty on the part of a customer to examine his pass book in india. If a customer takes up the duty of examining his pass book, it operates against him in case he is careless.

10. A wrong entry in a pass book favourable to a customer constitutes a settlement of account provided: The customer acts upon it immediately. The customer acts upon it in good faith and without negligence The customer has altered his position by relying upon it (b) and (c) together but not (a)

11. 2. The following one does not constitute a settlement of account as far as a pass book is concerned A wrong entry favourable to a customer A wrong entry favourable to a banker A fictitious entry (a) and (b) together.