Legal Question in Banking Law in India

Re: banking

Cheque can be Cleared and honoured without any doubt

Re: banking

it is not clear that the original cheque has been endorsed by the drawee bank as good for payment. If it were so, it amounts to a commitment on the bank to honour the same. If it is only a copy of the cheque endorsed as good for payment by the Bank concerned, it is necessary to prove the genuineness of the endorsement by the Bank concerned. If that is proved, then if the cheque bounces on presentation, then apart from proceeding against the drawer under Sec.138 N.I.Act, the payee can proceed against the Bank concerned also in a civil suit.

Re: banking

A good for payment cheque is like a bank guarantee provided the transaction is completed on agreed terms.

The cheque signify that the party has the capacity to make payment. Therefore, you need not to doubt about "sufficieny of funds" in party's account.

However, if the party has not given you a clear indication to present the cheque and the transaction is still inchoate, the sale/purchase of goods is not complete.

An appropriate legal opinion will vary depending upon facts and circumstances.

The facts provided by you are incomplete for proper advice.