Legal Question in Banking Law in India

cheque bounce

if somebody issues a cheque and lateron makes stop payment on that, will that b than also a criminal offene? and if yes/no, please give brief idea as how to go about it.


Asked on 9/04/07, 8:20 am

1 Answer from Attorneys
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: cheque bounce

There are sevral contradictory judgments on this point . However Supreme Court has recognised the priniciple that "stop payment" also attracts the provisions of Section 138 of NI Act. Further if stop payment is for justified reason like fraud etc. it is a good defence for accused in such matter It depends upon facts of each case and skill of advocate to fit his case right from notice till evidence to prove or disprove the matter as the case may be

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Answered on 9/08/07, 11:08 am


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