Negotiable Instrument Act

Rahul Singh (Querist) 24 September 2010 This query is : Resolved
The validity of the Cheque is of 6 months from the date mentioned on the Cheque.So, whether the Cheque should be deposited for collection within 6 months OR the Ch. should reach the collecting bank before the expiry of 6 months? If the Ch. when reaches the collecting bank,6 months period expires,So whether the offence u/s 138 Neg.Ins.Act is made out or not?Kindly give ruling of the latter

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Arvind Singh Chauhan (Expert) 24 September 2010
Yes it should reach to bank before the expiry of 6 months. if it reaches after the expire of 6 months, it itself does not amount to dishonour. Even bank should endorse while returning it to be expired or envalid ceque.

Raj Kumar Makkad (Expert) 24 September 2010
I agree with arvind.

G. ARAVINTHAN (Expert) 25 September 2010
Mr.Arvind is right. A cheque presented within 6 months of the date of the cheque should always reach the bank within that time

Rajeev kulshreshtha (Expert) 25 September 2010
If the cheque presented after the prescribed period than in that case the offence u/s 138 does not made.

N.K.Assumi (Expert) 25 September 2010
Presenting cheque after six months it becomes a stale one
.

s.subramanian (Expert) 25 September 2010
If the period of six months expires,it does not amount an offence at all.Please read the following judgments:-

1. K.T.Lalu Vs Kalam reported in 2005 Volume 1 Dishonur of Cheques Reporter Page 113 (Kerala High court)

2. Chairman,Jawahar Co-Op Urban Bank Ltd Vs Ramanjaneya Enterprises,Hyderabad reported in 2005 Volume 2 Dishonour of Cheques Reporter Page 169. Equivalents are 2005 (5) CrLj 591 (AP) 2005 (1)ALD (Crl) 634(AP)

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