Legal Question in Banking Law in India

banking law

i issued chqto individual person for rs 100000.00. the same was presented by the party to bank after 180 days. that is after the validity from the date of the chq. but bankers admitted for clearing. whethr it is correct done by the banks of drawee and drawer bank.


Asked on 6/26/08, 11:23 am

3 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: banking law

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Answered on 7/14/08, 5:18 am
J. Radhakrishnan independent Practice

Re: banking law

There is nothing wrong in a Bank sending a cheque which bears a date more than six months before the date it was put in for collection, to the drawee bank. Equally there is nothing wrong in the drawee Bank in honouring the cheque though presented for payment six months after the date it bears. The period of six months for the validity is more by convention than as a rule of law. But in such a case, if the cheque bounces, no remedy under Sec.138 N.I.Act as the cheque has not been presented within the period mentioned in terms of proviso(a) of Sec.138 N.I.Act, the holder cannot take action under the said section against the drawer.

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Answered on 6/26/08, 9:45 pm
G. M. Gupta gmguptaandassociates

Re: banking law

already replied

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Answered on 6/27/08, 3:50 am


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