Legal Question in Banking Law in India

Re: dishonouring of cheques

138 can be invoked even if the drawer had requested stop payment, however if you have a valid reason for the stop payment , u should make it and keep the record with you to subsequently proving in the court. simultaneously u must send a legal notice through an advocate to the payee stating reasons for stop payment and directing him to return the cheque.

Re: dishonouring of cheques

If the reason is not correct/legal then it is not lawful to make stop payment of the cheque. Hence you can proceed under the provisions of cheque bouncing

Re: dishonouring of cheques

It is not lawful to stop payment of a cheque which has reached the hands of the correct payee. If there is some mistake in the figures or name then it may be lawful to stop payment. Worse in the case if the reason for stoppage of the payment of cheque is incorrect. Remedy is provided only to the payee/holder of a cheque if it bounced, under Sec.138 N.I.Act. It does not afford any remedy to any unscrupulous drawer.

Re: dishonouring of cheques

138 can be invoked even if the drawer had requested stop payment.

Re: dishonouring of cheques

If chq is dishonoured then a case u/s 138 NI Act can be filed.