Dear Sir,
Please read the below paragraph found in a web page and please answer to my question,
1.Whether the cheque issued (say in the year 2011) from an account which was closed few years back(say in the year 1998) will attract Negotiable Instruments act ??
1. Existence of a live account
Existence of a "live account" at the time of issue of cheque is a condition precedent for attracting penal liability for the offence under this section. A cheque cannot be issued de hors an account maintained by its drawer with the banker. When the cheque is returned by the bank unpaid because of the account of money standing to the credit of the cheque, to make demand for payment as provided for payment as indicated in clause (b) of the proviso. The words "that account" in the section denote to the account in respect of which the cheque was drawn. No doubt if any person manages to issue a cheque without an account with the bank concerned its consequences would not snowball into the offence described under section 138 of the Act. For the offence under section 138 of the Act there must have been an account maintained by the drawer at the time of the cheque was drawn.
Thanks
Rajesh
