Regarding cheque issue
6 months ago
Hi Team,today i have deposited a cheque in ICICI Bank from my borrower who has taken money,I just got below message, Cheque 408 deposited in your ICICI Bank Account XX089 is returned due to PAYMENT STOPPED BY DRAWER.
Can you please let me know how to proceed further to get the money from my borrower for the cheque given
A.Dear Client,
Upon receipt of a timely stop payment order from the Account holder, the bank ceases to have authority to pay the cheque issued by the A/c holder. A stopped payment is usually requested if the cheque has been declared missing or lost. But many times the drawer, to escape his debt or liability has used it as an instrument of deception. A stop payment order is issued by the account holder and can only be enacted if the cheque or payment has not already been processed by the recipient. You can ask your bank to stop the payment, but remember that on dishonor of said cheque person can file a case u/s.138 of the Negotiable Instrument Act,1881 against you if you owe any amount to him. There are judgments of the Supreme Court laying down that “stop payment” instructions given by the drawer of the cheque do not really alter the character of a cheque dishonour case, provided all other ingredients of the offense defined under Section 138 of the Negotiable Instruments Act, 1881, are satisfied. It has also been held that the presumption mandated by Section 139 of the Negotiable Instruments Act regarding the existence of a legally enforceable debt or liability is raised even in the case of “stop payment” instructions. Thus, in spite of the fact that “stop payment” instructions have been issued by the drawer, if the cheque is presented by the payee in the bank and if it is dishonored, the offense of cheque bounce may still be made out depending on other facts and circumstances of the case. Accordingly, the drawer of the cheque may have to face the consequences of being found guilty of the offense under Section 138 of N I Act if ingredients of this offense are made out, in spite of the “stop payment” instructions. So, the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offense under the Act. Reach out to an Advocate for serving a legal notice to the cheque drawer and for filing a criminal case under Sec.138 of the N I Act against the person within 30 days if no response is received from the drawer of the cheque within 15 days.
Upon receipt of a timely stop payment order from the Account holder, the bank ceases to have authority to pay the cheque issued by the A/c holder. A stopped payment is usually requested if the cheque has been declared missing or lost. But many times the drawer, to escape his debt or liability has used it as an instrument of deception. A stop payment order is issued by the account holder and can only be enacted if the cheque or payment has not already been processed by the recipient. You can ask your bank to stop the payment, but remember that on dishonor of said cheque person can file a case u/s.138 of the Negotiable Instrument Act,1881 against you if you owe any amount to him. There are judgments of the Supreme Court laying down that “stop payment” instructions given by the drawer of the cheque do not really alter the character of a cheque dishonour case, provided all other ingredients of the offense defined under Section 138 of the Negotiable Instruments Act, 1881, are satisfied. It has also been held that the presumption mandated by Section 139 of the Negotiable Instruments Act regarding the existence of a legally enforceable debt or liability is raised even in the case of “stop payment” instructions. Thus, in spite of the fact that “stop payment” instructions have been issued by the drawer, if the cheque is presented by the payee in the bank and if it is dishonored, the offense of cheque bounce may still be made out depending on other facts and circumstances of the case. Accordingly, the drawer of the cheque may have to face the consequences of being found guilty of the offense under Section 138 of N I Act if ingredients of this offense are made out, in spite of the “stop payment” instructions. So, the stop payment of post-dated cheques issued by a person to settle his debt or liability could amount to a penal offense under the Act. Reach out to an Advocate for serving a legal notice to the cheque drawer and for filing a criminal case under Sec.138 of the N I Act against the person within 30 days if no response is received from the drawer of the cheque within 15 days.
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A.Dear
If a cheque is Payment stopped by the Drawer, the cheque drawer can be prosecuted under Section 138 of the Negotiable Instruments Act 1881. This is a criminal offense, and the drawer can be sentenced to imprisonment for up to two years, or a fine of up to twice the cheque amount, or both.
Regards
If a cheque is Payment stopped by the Drawer, the cheque drawer can be prosecuted under Section 138 of the Negotiable Instruments Act 1881. This is a criminal offense, and the drawer can be sentenced to imprisonment for up to two years, or a fine of up to twice the cheque amount, or both.
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