Legal Question in Banking Law in India
Cheque Bounce
If a cheque is returned from my account because i had placed a stop payment, Can i be prosecuted under a checque bounce case
6 Answers from Attorneys
Re: Cheque Bounce
Yes.
Re: Cheque Bounce
according to recent judgments, no. only if the cheque is returned due to insufficient of funds then only you can be prosecuted under Sec.138 of NI Act. Thank you
Re: Cheque Bounce
Not at all. Some other provisions of IPC may be attrachted, but NI is not attracted.
Re: Cheque Bounce
Yes, the "stop payment" instructions to the bank may not provide a valid defence if you were liable to make payment of amount represented in the cheque.
Re: Cheque Bounce
Notwithstanding stop payment, you can be prosecuted for dishonour of cheque and you have to prove that the cheque was not given in discharge of liability and also that you had sufficient funds to honour the cheque, had it been not counter manded.
Re: Cheque Bounce
Yes.
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