Legal Question in Banking Law in India

Cheque Bounce: Reason not valid

Hi, I have recently posted a same thread regd this.I had issue a cheque of PNB for part payment of my home loan account with Axis bank.The Cheque bounced with reason ''drawee sign mismatch''.I had a photocopy of the cheque issued therby I went to my home branch(PNB) and the manager agreed that the signatures are matching and it is the fault of the RCC(cheque clearing dept) of PNB;though it is all verbal.Initially he was trying to play safe and said that my account was inactive as I did'nt do any Debit transaction(though CR was done frequently)for a year but the PNB person wrote a wrong reason code.He then agred & ask me to bring the cheque along with the return memo to him and he will again re-present the same cheque(I don't know how;he was talking ab't some order memo) but Axis bank says that they can't return the bounced cheque to me as it is against there policy.I want the same cheque to be re-presented as through that my credit history will be maintained in the home loan account.Axis bank has also charge me a panalty of Rs 500 for the cheque bounce though PNB manager said that he will revert the cheque bounce charges of Rs 232 levied frm PNB.IS there any way through which my credit history is not spoiled b'coz of d fault of PNB.


Asked on 6/14/09, 7:58 am

6 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Cheque Bounce: Reason not valid

You may approach the Baning Ombudsman for appropriate directions.

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Answered on 6/14/09, 1:39 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Cheque Bounce: Reason not valid

You may approach the Baning Ombudsman for appropriate directions.

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Answered on 6/14/09, 1:39 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Cheque Bounce: Reason not valid

contact a local lawyer

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Answered on 6/15/09, 1:24 am
Pranav Desai PD Legal & Associates

Re: Cheque Bounce: Reason not valid

1) Prior to fighting with the Axis Bank you should clear their outstanding and then approach them for the original cheque along with the memo and file a case before the consumer forum for the negligence of the PNB bank and claim damages. Your claim for damages may not be limited to Rs. 500 but should also include harassment which was caused to you and which can be quantified in monetary terms.

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Answered on 6/16/09, 7:51 am
RAMAN KUMAR BHARDWAJ R.K. BHARDWAJ & ASSOCIATES

Re: Cheque Bounce: Reason not valid

you should write to Banking Ombudsman, you should also write to both the Banks and their Head Office. you can also file a case for deficiency in services in the consumer court

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Answered on 6/15/09, 11:50 am
J. Radhakrishnan independent Practice

Re: Cheque Bounce: Reason not valid

It is a clear case of deficieny of service on the part of PNB on whom u issued the cheque for having returned the same on loose verification. Issue a demand notice to Axis Bank to return the bounced cheque explaining the representations of the PNB or ask them to represent the cheque. If they fail to do so, issue notice to the Chairman and MD of PNB to compensate you for the wrong return of the cheque plus the costs debited by Axis Bank and also of PNB and claim a commensurate amount as compensation for loss of integrity on account of wrong return of the cheque . If he does not favourably dispose of the matter, file a complaint to Banking Ombudsman of the Region where your branch of PNB and Axis Bank situate. You can get the format of complaint and procedure regarding proceedings before the Ombudsman from RBI website. In the meanwhile, to avoid further complications pay up the instalments due to Axis Bank by issuing fresh cheques provided you have sufficient funds with your bank to honour the same. Do not delay

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Answered on 6/14/09, 11:42 am


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