Legal Question in Banking Law in India

stop payment of cheques

can a bank write on the face of the cheque '' STOP PAYMENT'' and give back the cheque to the payee stating the above reason after few days of presentation of cheque for transfer within same bank. In no what is the remedy available gainst the bank


Asked on 3/27/09, 7:20 am

3 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: stop payment of cheques

If on the date of presentation of cheque the Bank had instructions of the drawer to stop payment, there is nothing wrong in the bank returning the cheque with the said endorsement. Normally, the return time should be three days from the date of presentation of the cheque. If there was delay in returning the cheque by the bank, and if you can prove that by such delay, you have sustained damage, an action can lie against the Bank. Otherwise, it is futile to take any action on the bank. Better proceed against the drawer for the dishonour of the cheque.

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Answered on 3/27/09, 11:23 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: stop payment of cheques

HELLO.

GOOD AFTERNOON!

You should take action against the drawer of the cheque and forget about the actions done by the bank.

Its no big mistake by the Bank in anyways!

In case of need please contact personally alongwith the details.

OR

In case of further query mail me.

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Answered on 4/04/09, 5:53 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: stop payment of cheques

You may consider pursuing your remedy against the drawer of the cheque instead of considering action against the Bank.

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Answered on 3/27/09, 7:46 am


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