Legal Question in Banking Law in India

1. whether I can sale my house on the basis of payment order issued by

acommercial bank in my favour on account of sale value of my house . 2.

whether bank can cancel the said payment order after the sale deed is

registered in sub registrar office and possession is given to purchaser

3.whether the bank will not inform me before cancellation the payment

order where as this fact is already in banks knowledge 4. in how many

days i will get duplicate payment order if original is lost. 5.how can

i get payment of the said payment order if issued in my favour

6.whether payment order instrument is a negotiable order instrument and

if not paid by the bank can i file suit under section 138 of NI Act and

against bank or against purchager


Asked on 9/13/10, 1:27 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

1.You can have a pay order in your favour for price due to you, from a commercial bank.

2. Bank cannot cancel the pay order when it is already in the payee's hands

3.Bank has to inform the payee when pay order is cancelled by it.

4. It depends upon the particular bank's working as to within the days you get a duplicate

5. By having it collected thru your bank account.

6. It is not transferable. If the Bank does not honour its pay order properly signed by the payee and sent for collection thru his bank, you can sue the Bank in the consumer court. No question of invoking Sec.138 of the N.I.Act.

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Answered on 9/14/10, 7:34 pm


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