He give me a cheque and Make it stopped

Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

Such loan is taken by a person:-

1. Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.

1. who cannot raise bank loan because :-

Either

he himself is not creditworthy

Or

 the purpose for which he seeks loan is illegal

or

the purpose for which he seeks loan is not at all commercially viable.

1.  Who knows he can afford not to refund.
2. Who trusts his thick skin
3. Who intends not to refund
4. Who has made fortification against action of refund.

So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)

Such loans are given by the persons :-

1. Who has surplus money.
2. Who displays and boasts of such surplus money.
3. Who stupidly believe that there will be a refund.
4. Fails to realise as to why he alone (not bank) is being contacted for loan.
5. Who has extreme trust on the debtor
6. who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

1. Without documentation.
2. Without witness
3. Without guarantor.
4. During cordial relations

Soon after giving such loan :-

1. Relations are no more remain cordial
2. Business started by such money  (easy money belonging to other) invariably fails.
3. Such loans always sink and not refunded.
4. Person seeking such refund suffers at legal process.
5. Person seeking such refund legally or by persualtion is socially criticised.

Have you received Cheque Return Memo from the Bank? And if so what was the reason mentioned by Bank? These facts are missing from your query.

Subsequent to passing of Section 138 making it Criminal for issuing cheque without funds, Banks are not to return cheques "Stopped by Drawer" reason if there are no funds sufficient to pass the cheque even if the Drawer has given a letter to that effect.  This is to prevent the drawer escaping the penal provisions of Section 138 by subverting.  Therefore, the facts as noted above are vital. If the Bank had returned the cheque for reason "Payment Stopped by Drawer" when there are enough funds in the account, bank is in clear and you have to deal with your friend only.  If Bank returned the cheque with reason "Stopped by Drawer" even when there are no funds in the account, bank is not in order. 

You can take action under Section 138, only provided you can prove that the cheque given by your friend to you was towards consideration including repayment of loan taken by him and the reason for the cheque return is noted as "Insufficient funds".

You do not stand much chance of getting the money.

Originally posted by : Dr. MPS RAMANI Ph.D.[Tech]
	Though Sec. 138 mentions only insufficient funds, there are court decisions that stop cheque instructions will also attract penal provisions of Sec 138.

only if the drawer owes any money to the holder  if holder has any claim on the amount writen in cheque then he is holder in due course.

Yes the drawer should owe money. What I said was only whether the cheque was returned due to insufficiency of funds or due to the drawer giving stop cheque instruction would make no difference. Also Sec.139 transfers the burden of proof on to the accused. He has to prove why he issued the cheque in the first place if it was not to discharge a liability.

Even if cheque is stopped payment you can send notice for cheque bouncing and later on if the amount not paid with in time you can proceed to file complaint in court. 

No.

He has to proved that he was not just  holder rather holder in due course.

According to the narration the cheque was drawn in the name of the Complainant and the Complainant was not a holder in due course. He was the first payee or rather the first holder.