Litigation of cheque

NIA can not protect any drawer.  It steps in only to punish the drawer who has issued with intent to cheat when he has not adequate funds available at the time of presentation cheque, and also gives another opportunity to honor his commitment.  

In case of misuse, the drawer can write to the payee of the cheque against presentation, and can stop payment of the cheque.   Now the law is more strict, and once the payee files a complaint in TN, the Bangalore man must come to TN (Example).

Contact local advocate and show him the documents and explain the facts.

Dear Sir,        

           In this case, the Drawer made the cheque in the year 2010. Now the present days, the system of the cheque is different. The drawer gave a Blank cheque only and the cheque did not contain name of the payee, date was not mentioned and the amount was not filled in. There is no name of the payee. In order to show and get the money, the payee took the cheque and handed over it to the other person. The person who got the blank cheque now he is not alive. Now the person is holding the Blank Cheque and he can make any date and any amount as he likes. But it was issued Seven years bank as per Bank’s record. In this case no question of Payee, only the person having the cheque is Payee.                                                                                                                                                If the situation is being this, what will be the remedy and proctection for the Drawer ?      

              With regards,                                      

                                                                                                 D.Dakshina Murthy

This is simple.  Write all this in a letter and at the end direct the bank to note stop payment of the cheque  in view of the above in case if  cheque is presented for payment.

If what you are stating is a Fact, then do not worry about this if once Bank acknowledges your stop payment letter.

NI 138 applies when there is a lawful debt. It is mandatory that a notice need be issued before initiating crminal proceedings. The facts could be placed on record while replying to the Notice.

When some one is threatening you of presenting a cheque is it not proper to direct banker not to honor any cheque issued prior to 2010  if presented for payment or wise to close the account in that bank to have mental peace?

Dear Sirs, If the drawer intimate to the bank not to make payment or stop the payment, automatically the information will go to the person who holds the cheque which mentioned may be the present date and certain amount. The drawer issued the blank cheque and the person who holds the cheque made entries on that. Then, what can the drawer for his protection ? After returning the filled up cheque with comments from the bank, certainly, the person who hold the dishonor cheque, he will issue a notice to the drawer. Then what will be the drawer protection ?

As already suggested above, the Notice could be replied setting out the 'true' facts; this would be an adequate defence even if the matter reaches the Court.

Please remember that members can only provide guidance on facts and on mere assumptions that are not  practicable.  Your doubt is as follows:

i  If I ntimate to the bank not to make payment or stop the payment, automatically the information will go to the person who holds the cheque which mentioned may be the present date and certain amount.

Who said so ?  How the Banker knows who is the payee ?  Do you think that banker informs payee on receiving such countermanding of payment by drawer ?

The only possibility is that if that cheque is presented for payment, it will be returned  to the collecting banker with reason "stopped by drawer'  or  "payment countermanded".  The collecting banker in turn may return the cheque to the lodger of the cheque, and then only payee comes to know about such return.

After that the holder in due course may issue a notice to you demanding for such payment, and a suitable reply can be given.   

If all this procedure fails, then Sec.138 steps in if complainant prefers to file such complaint, depending on evidence available with him:

Both the parties have their own versions and it is difficult  for members to identify which is genuine and which is false claim to correctly addvise in absence of full deails and document verification.\Cross the Bridge when it comes..  This is a lesson to you and to those who issue blank signed cheques.