Legal Question in Banking Law in India

Re: bank had return the cheque after stop payment

Under the negotiable instrument act, prevailing in india, whether or not you give stop payment instructions to your bankers, it does not make much difference towards your liabilities associated with dishonour of cheque. Stop payment instructions can be given in genuine case, which subsequently helps, at the time of proving the debt i.e. say as in your case you had given a cheque under the criminal's influance and there was no liability as such, it was a perfact action to stop payment instructions, so that later true fact can be proved. however in your case, your Bankers also had not followed your instruction, for that you may take up the matter with your banker. the later may reverse the instructions or produce an afidavit to the effect that inadvertantly wrong remark was ticked at cheque returning memo.

if you can prove that you were not liable, you can be aquited from legal consequences

Re: bank had return the cheque after stop payment

As per banking laws a customer when gives a stop payment instruction to bank the said customer is entitled to get in writing confirmation from bank confirming their receipt of such instruction which subsequently can be produced in court of law as defence. Under Negotiable Instrument Act, as per the present scenario even stop payment is NOT valid defence and one has to face legAL CONSEQUENCES FOR SUCH RETURNED CHEQUES.