138 ni act

GVS SREE RAMA KUMAR (Querist) 27 September 2012 This query is : Resolved
A cheque was issued by the drawer was dishonoured as "account closed". drawee issued notice. which was not complied with by the drawer. Subsequently the same party issued another cheque, of the same account, for another transaction which was returned as funds insufficient. But originally the account was closed for technical grounds i.e. for not maintaining required balance. whether the same attracts section 138 of the NI Act.

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ajay sethi (Expert) 27 September 2012
in case cheque dishonoured on grounds account closed no complaint under section 138 Ni is maintanable .

however if party has issued another cheque which as been returned on grounds insufficent funds complaint is maintanable

to be on safe simultaneously file summary suit for recovery of outstanding dues

V R SHROFF (Expert) 27 September 2012
File two separate 138 cases. u r bound to win one, and chances to win second, as a/c was temporarily closed due to fault on accused side.

V R SHROFF (Expert) 27 September 2012
bank a/c was suspended, as continue later on.

kuldeep kumar (Expert) 28 September 2012
Stop payment, Refer to drawer, Account closed implies insufficiency of funds — Penal provisions are attracted. [RakeshNemkumarPorwal v. Narayan Dhondu, 1993 ISJ (Banking) 251).]
THIS IS NOT AN ACADEMIC QUERY IT NEEDS SERIOUS DISCUSSION

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