Banking Law

P.S.Subbaraman (Querist) 26 November 2009 This query is : Resolved
One of my clients had obtained a cheque for the sum that he had lent . The signatory to the cheque died and the family members of the signatory due to shock did not intimate the bankers of the death . The cheque got dishonoured due to insufficient funds ? The other side contends that the cheque has become stale after the death of the signatory? My client's contention is that the validity of the cheque is for six months period ? Is there any way out for my client?

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Raj Kumar Makkad (Expert) 26 November 2009
Your cleint should file a suit for recovery rather moving ahead in the criminal complaint under section 138 NI Act as the accused has already expired. The contention of the family of the accused shall not work that the cheque has been stolen.

Sachin Bhatia (Expert) 26 November 2009
Your cleint should file a suit for recovery in the Civil court.

adv. rajeev ( rajoo ) (Expert) 26 November 2009
civil suit is better instead of criminal case u/s 138 of NI Act, because person who issued a cheque died before the presentation of the cheque to the bank.