cheque stop payment
Mayuresh Gujar
(Querist) 06 December 2010
This query is : Resolved
sir
if a person who issued cheque , give notice for "stop payment" to that person in which favour he issued post dated cheque.
and after receving that notice, that person, in who's favour cheque was issued, he misused that cheque and file 138 complaint
what is the chances for acquittal in favour of accused?
pls tell me very soon
G. ARAVINTHAN
(Expert) 06 December 2010
Definitely an offence.
What is the reason for stop payment - state that first.
JT Rajasuriya, Chennai
(Expert) 07 December 2010
Sec.138 can normally be filed only for reasons of `insufficiency of funds'.
Acquittal is possible when valid reasons are stated for the stopping of payment i.e. when proved that cheques was not given for a debt.
adv. rajeev ( rajoo )
(Expert) 07 December 2010
If an intimation of stop payment is issued to the person in whose favour cheque is issued prior to the pesentation of cheque for the encashment does not attracts 138 of NI Act. But what reason is given in the intimation?
s.subramanian
(Expert) 07 December 2010
Is there a legally enforceable debt? If there is none you need not worry. Otherwise the chances are 50-50
Devajyoti Barman
(Expert) 07 December 2010
If the drawer of the cheque could rebut the presumption that the cheque was not drawn to discharge any debt, then he would be acquitted.
Advocate. Arunagiri
(Expert) 07 December 2010
Issuing "stoop Payment" notice to the complainant, will not help the accused in the trial.
The accused should issue stop payment instruction to the Banker only. If there is sufficient balance to honor the cheque, the stop payment instruction will be executed by the banker.
Sufficient balance - stop payment - Cheque return - No case.
Kirti Kar Tripathi
(Expert) 07 December 2010
When a cheque is issued, it is presumed that the same was issued against any liability and endorsement pf "Stop Payment" is very well within the scope of 138 NI Act. Now burden upon the accused to prove that the same was not issued against any liability. if he fails to prove, certainly it is an offence and he is liable for punishment.
