Legal Question in Banking Law in India
cheque bounce
what happens when a person with bounced cheque redeposites it in the same bank and after files a suit under section 138 of Negotiable INstruments Act, 1881?
1 Answer from Attorneys
Re: cheque bounce
when the cheque is bounced and notice of demand is issued within a period of 30 days the drawer has to make payment of such demanded cheque within 15 days thereof . If such drawer fails the payee or holder in due course can file complaint u/s 138 of NI Act. However if no notice of bouncing and demand is made cheque is deposited on several occassions till it is not stale the payment can be sought of such cheque . once notice is issued for demand of bounced cheque limitation as stated above starts. In case a person filed complaint u/s 138 and after filing the case he deposit the cheque he can seek the payment however in such case for subsequent bouncing no fresh case can't be there u/s 138 moreover the payee can well take stand of payment subsequent to filing of case . Under Section 138 as a matter of right the payee can't claim payment of cheque in the case . It is fine and punishment which gives fear in the mind of drawer which forces him to make payment . The payee can simulateausly proceed under 138 as well as under Civil Suit for recovery of cheque and other defaulted amount
Related Questions & Answers
-
Stay order from drt dear sir i have been given given a conditional stay order for... Asked 9/02/07, 8:00 am in India Banking Law
-
Very urgent i was in a great need of money 1 yr back then i had taken the money... Asked 8/31/07, 3:34 pm in India Banking Law
-
To know some Information Under Right to Information Act-2005, I want the know the... Asked 8/31/07, 3:36 am in India Banking Law
-
Fail to provide a job on compassionate ground and providing financial relief my... Asked 8/29/07, 12:42 pm in India Banking Law
-
Nomination Whether subsequent nomination to bank deposit will cancel the earlier... Asked 8/22/07, 7:29 am in India Banking Law