STOP PAYMENT OF CHEQUE

Querist : Anonymous (Querist) 03 January 2011 This query is : Resolved
A CHEQUE WAS ISSUED TO ONE OF EMPLOYEES AS LOAN RECOVERBALE FROM SALARY.THAT EMPLOYEE STARTED NUISNCE IN THE OFFICE FROM THE NEXT DAY OF RECEIPT OF THE CHEQUE SAYING THAT HIGHER SALARY THAT EMPLOYEE WOULD GET FROM OTHERS AND ASKED FOR RELEASE FROM SERVICE.
EMPLOYER ASKED FOR RETURN OF THE CHEQUE RECEIVED AS LOAN.THE EMPLOYEE PROMISED TO RETURN THE CHEQUE BUT NOT RETURNED. EMPLOYER FORCED TO RELEASE THE EMPLOYEE. EMPLOYER ADVISED BANK TO STOP PAYMENT IF CHEQUE IS NOT ENCASHED. CHEQUE WAS ISSUED ACCOUNT PAYEE.
CAN LEGAL NOTICE BE ISSUED BY THAT EMPLOYEE ON AN ARBITARY GROUND?
WAHT ACTION CAN TAKE BY THE EMPLOYER AGAINST THAT EMPLOYEE. PLEASE ADVICE.

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Raj Kumar Makkad (Expert) 03 January 2011
Employer can initiate disciplinary action as well as can file a criminal case under section 420 IPC.

H. S. Thukral (Expert) 03 January 2011
No action can be taken by the employer. There was no intention to cheat the employer when the cheque was received by the employee. The employer could/can ask the Bankers for stop payment on cheque by simultaneously kissuing a notice to the employee that the cheque was given as a loan during his status as employee and the facility of loan is no longer available to him on ceasing to be employee of the employer. If the employee has already encashed the cheque, suit for recovery with interest can be filed against him. Employee can not prosecute the employer for dishonour of cheque under NI Act in the cirucmstances for there being no legal enforceable liability/debt on the employer.

Ajay Bansal (Expert) 03 January 2011
Agreed with Mr.Makkad.

Querist : Anonymous (Querist) 04 January 2011
CAN THE EMPLOYEE WHO LEFT THE JOB ISSUE LEAGL NOTICE TO THE EMPLOYER ON THE MATTER OF STOP PAYMENT OF THE CHEQUE, AS STATED EARLIER ?

CAN THAT EMPLOYEE AKS THE EMPLOYER FOR ADDITIONAL AMOUNT FOR THE PERIOD OF THE JOB, WHEN ALL THE SLALARY DUE WAS PAID PROPERLY ?

CAN THE EMPLOYER TAKE LEGAL ACTION FOR NOT GIVING ANY PRIOR NOTICE FOR THE DISCONTINUATION OF THE SERVICE ON THAT EMPLOEE ?

pLEASE ADVISE.

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