Legal Question in Banking Law in India

whether cheque given to company with undertaking takeing that it will not be stopped can stop later


Asked on 4/04/10, 1:09 am

3 Answers from Attorneys
J. Radhakrishnan independent Practice

If it is stopped and the cheque is presented and returned with the reason that payment stopped, the payee can proceed under Sec.138 of the N.I.Act against the drawer of the cheque. It is not a question whether or not the drawer can stop payment of cheque inspite of giving an undertaking that it will not be countermandated. If stopped the consequences set out in the first sentence will follow and if it is found that on the day when the cheque was presented there were no funds or arrangement to honour the same, the offence is aggravated.

Read more
Answered on 4/04/10, 9:34 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

I agree with the above opinion.

Read more
Answered on 4/04/10, 5:27 pm
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

even if the cheque is stopped, it still is an offence u/s 138 of Negotiable Instruments Act.

Read more
Answered on 4/04/10, 11:23 pm


Related Questions & Answers

More Banking Law questions and answers in India