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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?
Raj Kumar Makkad (Expert) 03 December 2009
Why didn't you wrote a letter to the rawer of the cheque at the time of stopping the payment????

Anyhow, you have to prove beyond any reasonable doubt before the trial court that you stopped the cheque because of the fraud committed by drawer otherwise you are liable to face the consequences.

Adv Archana Deshmukh (Expert) 03 December 2009
Repeated quarry..
VIJAYARAJ (Expert) 04 December 2009
stop payment also amounts to dishonour of cheque. you have to prove your case before the traial court.
adv. rajeev ( rajoo ) (Expert) 04 December 2009
stop payment also attracts NI Act,you immediately reply the notice to the notice given by the drawer clarifying the reason for stop payment of cheque and instruct him to withdraw the notice, otherwise criminal case would be initiated against you like this.
If you have got genuine reason in case of complaint is filed you can defend.
Arvind Singh Chauhan (Expert) 04 December 2009
If we go through the Plain language of Sec 138, Stop payment is not a condition to invoke the cause of action for 138 NI Act. Many HC have relied on this point.
niranjan (Expert) 04 December 2009
Stop payment could only attract NI 138 if you had no funds in your account.Mr. Arvind is right.


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