Legal Question in Banking Law in India

hi

i had issues a chq of 30,000 to someone dated 31st august . he presented teh cheque in the same bank but different branch in the same city . now on 31st august the cheque got bounced but i beleive within a hours time my salary of 80,000 got credited into my account

my questions are

1. does the bank retry before bouncing the cheque

2. since we say 3 days clearing how the cheque can be bounced if i am having adequate balance on the same day


Asked on 8/31/10, 4:27 am

2 Answers from Attorneys
J. Radhakrishnan independent Practice

at the time the cheque comes to the drawee bank, if the balance is not sufficient, it will be returned though later on the same day, the account is credited with funds to honour the cheque. Ask the payee to present it . The 3 days is the grace period for the bank to collect the cheque and credit the payee's account on clearance. But nothing prevents the bank to try to collect it the same day and if in the drawee bank when the cheque comes for clearing, the balance is insufficient it will be returned.

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Answered on 9/02/10, 5:59 am
Vishwa Arya Arya & Co.

pay the amount when you get the notice.

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Answered on 9/12/10, 6:44 am


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