Demand draft becomes stale

robin (Querist) 22 October 2013 This query is : Resolved
a person gave me a demand draft of Rs 650 nearly 8 months ago.
I forgot to deposit the draft in bank .
now it is 8 month's older.
The draft expiry ends.
now what will I do?
How will I get the money?

Follow Query

Report Abuse

R.K Nanda (Expert) 22 October 2013
ask him to issue a fresh DD to u.

robin (Querist) 22 October 2013
to R K NANDA,

HE REFUSES TO GIVE ANOTHER ONE.

CAN I GO TO THE BANK AND REVALID THE DRAFT?

R.K Nanda (Expert) 22 October 2013
take cash from him as amount is very small and return his DD.

ajay sethi (Expert) 22 October 2013
if he is willing to pay cash take it and return his DD

Rajendra K Goyal (Expert) 22 October 2013
Generally Bank validate once such drafts issued by them. Approach Bank for validations. Bank may charge nominal service charges. State Bank charges Rs. 102/- for validation or cancellation of drafts.

V R SHROFF (Expert) 22 October 2013
contact bank; will do needful. DD stand in ur name, so hv right.

robin (Querist) 23 October 2013
HE IS REFUSING TO PAY CASH. HE IS SAYING THAT IF HE PAYS CASH THEN IT WILL BE LOSS FOR HIM. BECAUSE HE HAS TO PAY TWICE. HE ALREADY PAID THE AMOUNT BY DEMAND DRAFT. NOW HE HAS TO PAY THE AMOUNT AGAIN BY CASH. SO HE WILL SUFFER A LOSS. HE ALSO IS SAYING THAT IF HE GOES TO THE BANK AND CANCELL DD THEN BANK WILL DEDUCT SOME MONEY FOR CANCELLATION AND ALSO HE HAS NO TIME TO GO TO THE BANK AND CANCELL THE DD. THERE IS ALSO TRAVELLING EXPENSES .

WHAT WILL I DO?

PLEASE SUGGEST.
WILL I GO TO THE BANK ?
CAN I REVALID THE DRAFT ?

CAN PAYEE REVALID THE DD?

Rajendra K Goyal (Expert) 23 October 2013
Bank is not supposed to forget its service charges and service tax on service provided for cancellation or re-validation. It was your fault that the draft was not presented in time for payment. Hence, you should bear this small service charge for your fault. Take cash less by amount which would be charged by the bank in cancellation of draft.
Legal step would not be cost and time effective to this.

robin (Querist) 23 October 2013
TO RAJENDRA K GOYAL,

THAT MEANS I CAN NOT REVALID THE DD ?

THAT MEANS PAYEE CAN NOT REVALID THE DD?

IS IT?

Sudhir Kumar, Advocate (Expert) 23 October 2013
You cannot revalidate the DD. You have been advised so by all experts above.

It appears that you did not deposit DD in time and it got stale now you want other party only to be punished so that he spends the service charges of the bank and goes to bank again.

Sudhir Kumar, Advocate (Expert) 23 October 2013
Since you said that the other party has expressed that he will have to pay twice as he has already paid vide DD. It appears that you are neither returning the DD nor wiling to accept a lessor amount to offset his loss.

robin (Querist) 24 October 2013
to SUDHIR KUMAR,

THE PERRSON DON'T WANT TO GO TO THE BANK BECAUSE HE DOES NOT HAVE TIME TO GO TO THE BANK AND CANCELL THE DEMAND DRAFT.

I AM NOT GETTING THE MONEY FOR THIS REASON.

Rajendra K Goyal (Expert) 24 October 2013
Payee can get the draft re-validated. Contact the Bank and if Bank is satisfied on the written request of the payee it would re-validate to the payee. otherwise Purchaser can give a letter for the same if he can not go to Bank.
Draft will be re-validated at the isuing branch.