NIA 138
Suresh Ahuja
(Querist) 04 February 2011
This query is : Resolved
Sir,
Thank you for your quick reply.
But please give answer to second part of my query which is as under:-
Does a lost cheque comes under NIA 138?
Please answer and any judgement in suppurt of the answer please tell.
Thank you.
Suresh Ahuja.
R.Ramachandran
(Expert) 04 February 2011
Dear Mr. Suresh,
You say that you issued a cheque in favour of some one duly signed, but is lost.
You do not say when was it lost - whether it was lost in transit? That means that you received any intimation from the intended addressee that he did not receive the instrument and on that basis you informed the bank?
Or the instrument was lost by you even before mailing it to the intended party?
In any case, was the person named in the cheque is the same who presented it to the bank or someone else who was an unintended party?
In the first case, you should have issued a fresh instrument in place of the lost instrument and if the person presents the lost cheque subsequently, you will have proper answer for the same. If you did not issue a replacement cheque then you have to answer for / pay now.
If the person who presented the cheque is an unintended party, then also you can defend your position.
In any case, you cannot find fault with the bank since Banks have been directed by RBI to indicate whether there is sufficient fund or not. Only if there is sufficient fund in the account and then payment has been stopped, the bank will issue the 'stop payment' memo otherwise even though the payment has been stopped by you, the bank will issue 'insufficient fund' memo while returning the cheque.
Whether you have any liability or not towards the presenter of the cheque, you have to answer before the Court in the proceedings u/s. 138 N.I. Act.
Jainodin shaikh
(Expert) 04 February 2011
It attracts the N.I. Act If the cheque is lost after its dishouner.
vijayan
(Expert) 05 February 2011
The stage when it is lost has much importance. Without a cheque , section 138 of NI act will not stand because it is the subject matter of the case.
