banks power to freeze account

This query is : Resolved 

Querist : Anonymous (Querist)
30 January 2011

When the cheque is genuine, signature on the cheque is genuine, and the amount has been transferred can a bank freeze the account of the receiptant on the basis of verbal request of the person who originally gave the cheque. There was no stop PAYMENT, NOR COURT DIRECTION.

adv. rajeev ( rajoo ) (Expert)
30 January 2011

Bank cannot freez the account without any order from competent authority, if it does so without any orders from the competent authority, the illegal act of the bank amounts to deficiency of service, it comes under consumer act.

Ajay Bansal (Expert)
30 January 2011

Agreed with adv.rajeev.

Uma parameswaran (Expert)
30 January 2011

Bank has no power to do so.

Kirti Kar Tripathi (Expert)
30 January 2011

Bank can not stop payment of genuine cheque without the orders of the competent authority or court.

Advocate. Arunagiri (Expert)
30 January 2011

Seems to be a imaginary question.

Querist : Anonymous (Querist)
30 January 2011

ICICI Bank has done the same and later on my client was arrested u/s 420/467/468/120B, later released on bail , but 1 year has paased the police could not file chargesheet, now what is the course of action to be taken

Deekshitulu.V.S.R (Expert)
01 February 2011

U/S 138 of NI Act, on the request of the person who issued the cheque, the Bank can stop payment of the cheque. Oral request is not permissible and acceptable.

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