Legal Question in Banking Law in India

Cash paid against bounce cheque

One of my cheque was dishonoured issued to the party stating ''effect not cleared present again'' by the bank. After three days I paid cash to the party through berar cheque against that dishonoured cheque. Party had neither issued me receipt against cash paid nor return back that bounced cheque to me. Intentionally Party again deposited that previous dishonoured cheque and as no question of payment arise it was dishonoured again stating ''insufficient fund'' by the bank. And now Party has send me the notice under section 132 for cheque bounce. What should i do now ?


Asked on 12/02/06, 2:59 am

2 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Cash paid against bounce cheque

First thing Notice under Sec.132 is incorrect. It must be under Sec.138. Be that as it may, you have to reply that the cheque which has bounced has already been substituted by the cheque which was honoured and paid to him,albeit bearer cheque. The reply should not be delayed. You can then take the defence that the cheque now presented was not in discharge of any liability and already has become reduntant in view of the issue of the subsequent cheque and payment thereof. Any failure by you to reply will weaken your defence, if the holder of the dud cheque prosecutes you in a court of law.

Read more
Answered on 12/02/06, 8:55 pm

Re: Cash paid against bounce cheque

Dear sir,

It is advised that you sent the reply to the notice within 15 days from the date of receiving the notice and give your version and also the particulars of cheque through which you had paid the ammount.

fOR ANY OTHER QUERY/ASSISTANCE CAL ON 9873343288.

THANKS.

SIDDHARTH

Read more
Answered on 12/02/06, 8:22 am


Related Questions & Answers

More Banking Law questions and answers in India