stop payment by drawer

Querist : Anonymous (Querist) 03 December 2009 This query is : Resolved
dear sir
i want to know about negociable instrument act section 138
i issue cheque to the party but party cheated me so i was stop payment
party issue me notice under section 138
return memo was issue by bank stop payment
by drawer i have also sufficient fund in bank account
what can i do?

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Adv Archana Deshmukh (Expert) 03 December 2009
Repeated querry..

N RAMESH. (Expert) 03 December 2009
Under the provisions of Negotiable Instrument Act, the presumption is that you issued the cheque to discharge legal liability.

After issuance of cheque, giving stop payment instruction will not absolve you from the penal liability, though you have enough fund in the bank.
Law in this aspect is well settled now.

Go ahead with trial and prove that there was no legally enforceable debt on the date of presentation of the cheque by the other party.