Legal Question in Banking Law in India

cheque counced

A party has issued me a cheque for payment and it got bounced and he also cancelled the project due to non payment but now he is demanding for the bounced cheque.

Is ther a rule or law that I have to return the bounced cheque to the party please intimate me as early as possible


Asked on 3/27/08, 6:58 am

4 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: cheque counced

No there is no rule or law

Read more
Answered on 3/28/08, 10:15 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: cheque counced

No there is no rule or law but as there is no legal liability to pay you he can demand his bounched cheque.

Read more
Answered on 3/27/08, 7:52 am

Re: cheque counced

No,as such there is no law.

Read more
Answered on 3/27/08, 1:25 pm
Vivek Mapara Vivek N. Mapara

Re: cheque counced

If the project for which the cheque is issued, is cancelled, and if you ar not entitled to any payment, then under such circumstances, you have to return the cheque, otherwise it would amount to unauthorized retaining of the cheque.

In contrary situation, you can lodge complaint under 138, and you dont have to return the cheque.

Read more
Answered on 3/27/08, 1:28 pm


Related Questions & Answers

More Banking Law questions and answers in India