Payment stopped by the holder because of non supply of material
sanjanaa35
(Querist) 03 January 2017
This query is : Resolved
sir,
If a cheque issued by the holder stopped payment saying that the advance cheque given to the party for the supply of material. But the drawer supplied material to another party , then the holder is liable for the payment.
The holder stopped payment of drawer because of non supply of material. Then in this case NI Act applies.
rgds
jack
Rajendra K Goyal
(Expert) 03 January 2017
facts are confusing / not clear.
Only drawer can issue stop payment instructions of a cheque to Bank, holder can not stop the payment of cheque.