Lost demand draft presented
Querist :
Anonymous
(Querist) 30 December 2011
This query is : Resolved
Respected experts,
I seek your guidance on a problem that I have. I obtained a DD for Rs.30000/- from HDFC bank against my SB account and lost the same. I went to bank the next day morning , reported the same, filled in the indemnity, franking done for Rs. 100/-, submitted and obtained the duplicate in lieu of the original. Bank people told me that the old one is now cancelled and the new one should be used.
Without my knowledge, the lost DD reached the party and they presented in a bank and when it came for clearance, my branch rejected the payment quoting that the DD was reported lost and a duplicate was issue in lieu. The party, without taking the duplicate from me, have submitted the old DD (which was said by bank as cancelled) for payment again. Now, my bank people called me and told that they have to honour the payment whereas I am not yet ready to submit the same to the party. Can you please advise me on what can be done to let me hold my payment to them?
Thanking you,
Shiva.
R.Ramachandran
(Expert) 30 December 2011
Dear Mr. Shiva,
The DD of its own has no brain to reach the intended party!
Yes, you have tricked the bank into believing your story and to issue a fresh DD in lieu of the supposedly lost one!
Having obtained a new DD, you for the reasons best known to you, did not send it to the party on whose favour you obtained the same.
Neither you informed the party that the original DD obtained by you had been lost and that you will be obtaining a new one. (Had you informed, naturally that party would not have deposited the same for encashment!). In these circumstances, the party is not even aware about your machinations, and therefore there is under complete belief that whatever DD that it ought to get it had received and proceeded without having any need whatsoever to either consult you or to obtain any fresh DD from you.
Nor did you send the new DD to the party, or inform it why you will not be making the payment / deliver the DD to it.
Having issued the DD, the bank is estopped from not honouring the same. The bank will be in trouble. The bank will definitely honour the DD which according to you had been lost. The bank will definitely invoke the "indemnity" granted by you.
YOU WILL NOT BE ABLE TO WITHHOLD THE PAYMENT AGAINST THE DD, whatever may be your machinations.
Querist :
Anonymous
(Querist) 30 December 2011
Dear expert,
Thanks for the quick response. The assumption is incorrect. I informed the party immediately that the DD is lost and a new DD is obtained. They later came back to me saying that they have the DD with them and have been saying that they will return it to me and have been trying to deposit time and again. They have been escaping from me and not letting me meet them.
Thank you very much.
R.Ramachandran
(Expert) 30 December 2011
Dear Mr. Shiva,
Forget about what did they said.
Can you explain how a DD obtained by you, and said to be lost by you, reached the correct party?
Assuming that they told you that they received the DD and they presented it, what harm you have if the bank honours the DD. All that you have to do is to return the new DD in your hand to the bank. This will be in line with your indemnity to the bank.
Even now you say that "whereas I am not yet ready to submit the same to the party." If this is not machination betraying your intention not to honour your commitment, what else is? Therefore, please be rest assured that I have not at all made any incorrect assumption of the fact situation.
Querist :
Anonymous
(Querist) 30 December 2011
Dear Ramachandran,
It is really hard for me to understand the word "machination" you used. We have two different things as we see here - possibly, I didn't make it fully clear of things happened and second, I believe I have to submit the DD that I have taken to them.
The DD has simply been stolen. I have that person visited me and we agreed that I would submit it two days later. When I checked it next day morning, I noticed that the DD was missing. Called him and after concluding that it is lost, I approached the bank for the duplicate. I immediately notified those guys over SMS as they are not taking up the calls. It is then they came back saying that they have it with them. And, after my intimation also, they submitted that same DD for payment a day later. Probably this makes it clear.
Coming to honouring the payment, I dont really feel very comfortable with all that has happenned with them. And, that is the reason why I am just checking with you. I didnt go for cancellation of DD immediately and opted for duplicate DD just because I was still thinking of giving them at that time.
Hope, you understand the position now.
R.Ramachandran
(Expert) 30 December 2011
I am least convinced. I am fully conscious that you are not at all obliged to convince me.
Querist :
Anonymous
(Querist) 30 December 2011
Well, it is not about convincing you or anyone as such. I just presented my problem straight as this looked to be a forum wherein I get an answer. I feel there is a lack of thinking straight. Keeping aside all this extra remarks, etc I got answer that the payment cant be held, thanks!
prabhakar singh
(Expert) 31 December 2011
WHATEVER MAY BE THE REASON THE ANSWER LIES IN YOUR THIS PART OF THE sentence:
"I didnt go for cancellation of DD immediately and opted for duplicate DD just because I was still thinking of giving them at that time."
AND YOUR CONCLUSION"I got answer that the payment cant be held, thanks!"IS ALSO CORRECT!!!
Guest
(Expert) 31 December 2011
Dear Shiva,
Please don't mind, you may or may not get convinced by the replies/ logic of any one or every of the experts, but your own action was quite doubtful. BUT REST ASSURED, THE EXPERTS ARE NOT HERE TO MISLEAD OR MISGUIDE YOU, AS YOU MAY POBABLY THINK OTHERWISE, IF SOME ONE ASKS MORE INFO JUST TO GUIDE YOU PROPERLY.
Naturally, DD cannot reach by itself by flying in the air unless specifically sent by you or some of your associate.
I am sure you would have not posted the original DD to the concerned party till you could get the duplicate one issued. You posted the original one to the concerned party, while kept the duplicate with you, so that on one hand the party may not remain in doubt about your creditworthiness, but on the other hand you may also not release any money our of your hand, merely by paying a paltry sum of Rs.100.
The question arises, when you assumed your DD for Rs.30,000 had already lost, what was the logic in not sending the duplicate one to the concerned party and kept with you after issue? That instance itself gives vent to your intentions.
To be frank, your action clearly indicates your smartness and intention to hoodwink the concerned party on one hand by posting the DD to the concerned party and on the other hand getting the payment automatically stopped on reporting loss to avoid the blame of intentionally stopping that on specific instructions.
Payment of fee of Rs. 100 for Indemnity Bond cannot cover up your apparent intention. Since the party concerned has very clearly got ample proof of on dishonour memo about cheating instance, even your banker may not be able to help you if the party files a suit for cheating and even fraud on you.
So, it is in your own interest, not to get pandora box opened in the case by delaying the payment. Only prompt handover of duplicate DD to the party can get the case hushed up.
ajay sethi
(Expert) 31 December 2011
agree with experts opinion
Shonee Kapoor
(Expert) 07 January 2012
Nothing more to be added.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
