Negotiable Instrument Act
Amarnath
(Querist) 31 August 2010
This query is : Resolved
1. Whether the Cheque is as equal to an On Demand Promissory Note to file a suit for recovery money.
2. The said cheque has not at all present to the bank for collection whether the said cheque will give cause of action to file a suit for recovery of money.
3. Whether the non presentation of the cheque to the bank will not affect the right of the holder of cheque to sue a civil suit.
Rajeev kulshreshtha
(Expert) 31 August 2010
The cheque is only a acknowledgement of loan in that case you have to present it into bank if it dishonored you can file the civil suit but in that case you have to prove the debt with convincing evidence.In the contrary if you have paid the loan through cheque than you can file the recovery suit on behalf of that cheque.
s.subramanian
(Expert) 31 August 2010
Yes. I agree with Mr.Rajeev.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 01 September 2010
The basic question is what is the situation if cheque is not presented.
Liability will start only after presentation of cheque.
If it is not presented during its validity it is just a piece of paper.
J K Agrawal
(Expert) 01 September 2010
Loan does not require to be by way of cheque only.
Nor cheque is merely an acknowledgement actually it is a bill of exchange drawn upon a bank and is amounting to valuable security convertible into cash. It is a Negotiable Instrument.
for an cause of action is nonpayment of cheque, it is certainly required to get the cheque dishonored but here the cause of action is nonpayment of loan amount itself and cheque is only one of mode of payments of loan so the suit is not bases upon cheque.
Discharge of a cheque is only by 3 ways under s 82 of N I Act those are a) by cancellation b) by release c) by payment. So presentation of cheque is not necessary to gain a cause of action.
Surrender K Singal
(Expert) 01 September 2010
Once the cheque is bounced and it was in payment of a liability towards the payee, such would be good cause of action under N I Act as also for Civil Suit for recovery under Summary proceedings O.37 CPC
