Legal Question in Banking Law in India

sec 138 of NI act

Payee bank has simply returned a cheque without giving any reason. Collecting bank's return memo says in reason column 'not known'. Any hitch in filing case under sec 138 ?


Asked on 8/27/08, 12:17 am

3 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: sec 138 of NI act

contact the bank for its meaning

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Answered on 8/28/08, 7:32 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sec 138 of NI act

yes, you should insist upon the bank to provide you reasons. otherwise, you should present the cheque again.

If the cheque is returned by the bank for its on fault, you cannot attribute any fault to the drawer.

In any case, you are required to serve a demand notice upon the drawer after cheque is returned; and he shall have sufficient time and opportunity to make you the payment before you choose to file case u/s 138.

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Answered on 8/27/08, 5:47 am
J. Radhakrishnan independent Practice

Re: sec 138 of NI act

first ask the Bank to give the correct reason. You must also serve notice on the drawer within 30 days of the return of the cheque. If he does not pay, proceed with a complaint under Sec.138 N.I.Act.

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Answered on 8/27/08, 10:30 pm


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