Legal Question in Banking Law in India

I purchased a banker's cheque from SBI and delivered to a hotel as advance for holding a party after 6 months. on the other day, i informed the hotel that party has been cancelled and as such they should not present the banker's cheque in clearing. However, they presented the cheque for payment. I then stopped payment of banker's cheque. .Bank debited my account and passed on to the hotel on the pleas that i can not stop payment of Bankers cheque. The hotel has not lodged any complaint against me. was my action in doing so in order


Asked on 9/04/09, 3:26 am

2 Answers from Attorneys
KAMAL GROVER

you can file the case of recovery from hotel.

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Answered on 9/04/09, 3:57 am
J. Radhakrishnan independent Practice

Your stopping payment of Banker's cheque is of no consequence. A bank cannot accept stop payment of its cheque purchased by anybody. The Bank's action was perfectly legal. However you can take legal action against the Hotel for reimbursement of the amount as the consideration for payment to Hotel i.e. for party expenses has failed on account of your cancelling the party to be held in future.

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Answered on 9/04/09, 10:48 pm


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