Where cheques are procured by a thorough-going fraudulent scheme in which any purported consideration is non-existent or illusory, no concluded contract comes into existence, and the drawer remains the true owner entitled to immediate possession of the cheques without needing to rescind any contract. A collecting bank that credits the proceeds to the fraudster's personal account is liable for conversion. The question whether subsequent rescission of a genuinely voidable contract can retrospectively create conversion liability was expressly left open by Heydon JA.
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