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saurabh   23 April 2017

Article 138 of NI act

I took an admission of my ward in std 3rd and paid the admission fees by cheque. As my ward doesn't want to go to that school, I requested for stop payment for the cheque and informed school authority for not deposit the chq in writing. What shall be the consequences for the same. There is sufficient fund in mybaccount to honour the chq. Within 5 days I applied for cancellation.


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 4 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     24 April 2017

Please be assured nothing will happen. The point is when you have given stop payment instructions to your bank, if you have enough funds in your account to pass the chequ in qustion, such stop payment cannot be considered under Section 138 at all.  Underlying principle is that a debtor should not give stop payment instructions (when he does not have sufficient funds) to escape from being penalised under section 138, Courts will see this fact.

 

Finally, do you think a school/college will proceed against you under Section 138 (where they have to file a police complaint etc.) for recovery of their fee which may be a few thousands. Its a long shot. Even if they take such foolish step, you are inthe clear as per the law.

G.L.N. Prasad (Retired employee.)     24 April 2017

Just issue a Registered notice stating that you are not interested in admitting your child in their school, and this was stated earlier also asking school not to present the cheque.  Now that cheque is lying with them, that may be immediately returned to the drawer as expeditiously as possible.

saurabh   26 April 2017

Thanks a lot

saurabh   26 April 2017

Thanks a lot

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