Representation of cheque....

Cheque Victim's Lawyer. LUDHIANA (PB)

Hi...

Once cheque is bounced with the remarks "Account Closed" but payee did not serve legal notice with in 30 days of said bouncing. He again re present (Successive presentation) the cheque to get fresh limitation to serve legal notice. Is it permissible in law..?

 

Thanks..

 
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Advocate

yes, cheque can be redeposited for encashment. As per latest law a cheque can be presented several times during its validity period of three months. consult a lawyer with details.
 
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Retired employee.

When the reason for first return is "Account closed", presenting the cheque only for getting limitation period extended may not be proper and it depends on such decision of court.  Not come across any such precedent of representation of cheque in this kind of reason for return as cheque closed.  However if the reason for return is refer to drawer, or funds insufficient, this may be different.

 
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Lawyer

The cheque can be presented any times during its validity (3 months from the date of cheque). 

Fresh limitation and cause of action shall start from each memo of dishonour.

 
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Cheque Victim's Lawyer. LUDHIANA (PB)

Pl go through this judgement and share some latest in this connection...

Basavantappa Sangappa Rotti vs Veeranna @ Veerappa on 12 March, 2013..... (Karnataka HC)

........."The drawer could be given opportunity to make good the funds in the account for honouring the cheque on the second presentation. In case of "Account closed", the question of successive presentation makes no sense because the account itself is not in existence"..........

Thanks...

 
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Retired employee.

The final query appears to be still open:  Can limitation be extended by representing the cheque with the reason "Account closed" ?

 
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Advocate

MSR Leathers v. S. Palaniappan, (2013) 1 SCC177 is relevant.
 
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Advocate

MSR Leathers v. S. Palaniappan, (2013) 1 SCC177 is relevant.
 
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