Legal Question in Banking Law in India

The situation is like this

I purchased a banker check in A's name on the request of B who is known to me, B was in some problems, he and his father approached me with a request for that DD and gave me post dated checks for that amount and promised to clear the checks within one month from the date of that DD.

I took the checks and purchased the DD from my savings bank account.

one month after that I presented the checks for collection. The checks came back unpaid, I enquired about the DD encashment in my bank, which was not encashed till then. I put a request with my bank to STOP PAYMENT for that DD, which my back promptly did. I have requested my bank to cancel the DD and credit the amount to my account, the bank is not able to do because the beneficiary is also claiming.

the beneficiary is not at all known to me, and I font have any kind of dealing with him.

please suggest me how do I go about claiming my amount back to my account.


Asked on 12/07/14, 2:24 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

07.12.2014

Dear Sir / Madam,

You cannot absolve yourself of your liability to honour the DD. You will have to file a case for cheque dishonour and recovery of the cheque amount under Section 138 of the Negotiable Instruments Act.

Regards,

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Answered on 12/07/14, 5:23 am


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