Legal Question in Banking Law in India

stop payment of cheque
I had supplied material to one of my debtors in Aug 08 of which he had given me cheques of Sept 08 He returned all the cheques and in Oct 08 had sent me a regd letter asking us to get the chegues changed as he had changed his banker. He gave me cheques of new bank vary late in Jan 09 and the cheques had dates from feb 09 to July 09. He had given me ard 35 cheqes and passing few has made stop payemnt of cheques to be presented in March 09 . I fear that he will slowly stop the other cheques also and change the banker again as his present banker is not happy with him due cheques being returned on large sacle. What strict action can I take against him and which law

Asked on 3/21/09, 2:15 am

3 Answers from Attorneys

J. Radhakrishnan independent Practice

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Re: stop payment of cheque

Notwithstanding his issuing a letter stating not to present the cheques he had given, and issuing stop payment to banks concerned or even changing the banks, you can still present the cheques (after issuing a reply to him that his present stance is not acceptable to you) and if they get dishonoured, you can still proceed against him under Sec.138 N.I.Act. The other alternative is to simply file a suit for the amount due, get a decree and execute it.

Answered on 3/22/09, 9:17 am

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