Legal Question in Banking Law in India

Banking Law with foriegn Cheque

We are one of the exporter from India, and we deals solar energy products like solar modules, cells etc.

In the month of May we have received two cheques payment from Uganda for supply of solar modules.

We have produced that cheques to our bank for clearence. After 21 days it get credited to our account. Our bankers have declared that your cheque has been credited to your account.

After that we asked our banker for credit advise(remittence Certificate) so that we can despatch the material, and our banker has given us the remittence certificate.

After that we have despatched goods to buyer.

After despatch of our bankers has given us notice that both of your cheques are returned back unpaid.

Now buyer has cleared goods from port and our bank is forcing us to return the money.

We have despatched goods after getting confirmation from bank and remittence certificate.

Please advise us how to deal with this transaction


Asked on 9/22/07, 12:55 pm

3 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Banking Law with foriegn Cheque

first of all you may file a suit agains t your bank under Consumer Protection Act and claim damages from bank and you may also proceed u/s. 138 of the Negotiable Instruments Act for the cheques which is dishonoured.

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Answered on 9/23/07, 2:33 am
J. Radhakrishnan independent Practice

Re: Banking Law with foriegn Cheque

You can file a suit against your Banker for having advised credit of the cheques and later reversing the credit. consult a local lawyer well versed in banking matters.

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Answered on 9/23/07, 10:03 am

Re: Banking Law with foriegn Cheque

you may proceed u/s.138 NI Act for cheque bounce and proceed against the said company.You may also proceed against bank under consumer protection Act and can claim damages from bank as due to deficiency in service by bank you and ur company had suffered loss.But your company have to return the bank amount.

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Answered on 9/22/07, 1:02 pm


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