Legal Question in Banking Law in India

cheque issued to issue as a loan to an individual

I have issued a post dated cheque to one of my known person on request as a loan. We don't have any financial dealings from either side. There is no legally enforceable liability or any other liability . I am having sufficient funds in my bank account. Can i instruct my bank to stop payment? Is it a offence under section section 138. Pl. Guide me.


Asked on 9/22/07, 6:53 pm

4 Answers from Attorneys

Re: cheque issued to issue as a loan to an individual

Yes,it is an offence.It is better that you demand back your cheque.

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Answered on 9/22/07, 11:49 pm
G. M. Gupta gmguptaandassociates

Re: cheque issued to issue as a loan to an individual

you should have any written document for the purpose of giving the cheque. if you have not taken then stopping the payment can be an offence.

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Answered on 12/09/07, 12:02 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: cheque issued to issue as a loan to an individual

You you may demand your check back and it is an offence if you instruct the bank to stop payment of the check issued by you

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Answered on 9/23/07, 2:35 am
J. Radhakrishnan independent Practice

Re: cheque issued to issue as a loan to an individual

The offence comes into the picture only when the cheque bounces, the holder issues the notice and no payment is made. A cheque which was issued for lending at the option of the lender can be counter manded. In case, the payee proceeds under Sec.138, you have to prove that the cheque is not in discharge of any liability and only given for lending a loan on which you have changed your mind later.

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Answered on 9/23/07, 9:43 am


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