Cheque bouncing

AK Misra (Querist) 24 January 2017 This query is : Resolved

Cheque is returned with reasons "Others-Inoperative account" . Whether attracts action under U/S 138 ?

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Guest (Expert) 24 January 2017
YES and Do not worry First Serve a Notice for Payment on the Reason mentioned and Proceed with the case.Consult A Local Good Senior Advocate.

Guest (Expert) 24 January 2017
No crime is involved.

Inoperative account does not mean insufficiency of funds. So the reason does not attract the provisions of Section 138, as that does not tantamount to dishonour of cheque on account of insufficiency of funds.

Ms.Usha Kapoor (Expert) 25 January 2017
Agree with Rajkumar alias Narsimha.

Adv. Yogen Kakade (Expert) 25 January 2017
You can certainly take action under the provisions of NI act. Take a help of good lawyer to help you.

Rajendra K Goyal (Expert) 30 January 2017
Have you discussed with the drawer of the cheque ? Has he refused to issue another cheque of operative account or get the account operative.

Bank should not return the cheque only because the account is in-operative / dormant.

If drawer is not ready to co-operate, send notice.

Guest (Expert) 30 January 2017
"Bank Should not return the Cheque" What does the Child/Anonymous Mean by that Please.

Rajendra K Goyal (Expert) 30 January 2017
Account being Inoperative does not mean account has been closed / can not be operated. It is internal process of the Bank to be more vigilant in allowing transaction in such account.

Drawer has issued cheque and has been presented for payment, it is instruction from account holder to Bank to activate the account.

Bank should pay the cheque if KYC is complete, signature tallies, cheque was from same account.

Visit:

http://economictimes.indiatimes.com/wealth/save/how-to-activate-an-inoperative-bank-account/articleshow/49427462.cms

In terms of RBI guidelines, banks are required to make an annual review of accounts in which there are no operations (i.e., no credit or debit other than crediting of periodic interest or debiting of service charges) for more than one year. In case there have no "transactions", the bank is required to inform the account holder to activate the account by putting through any single debit or credit transaction which can also be put through a third party. If the account is still not activated and no reply is received, the bank will classify the account as dormant at the end of two years from the date of last transaction. RBI has also specified the procedure to be followed in case the letter sent is returned back.

However, where the account holder replies and gives the reasons for not operating the account, bank will continue classifying the same as an opertive account for one more year within which period the account holder can operate the account. However, if the account holder still does not operate the same during the extended period, the account will be classified as inoperative at the end of the extended period.

http://www.allbankingsolutions.com/Banking-Tutor/Dormant-Inoperative-Accounts-Unclaimed-deposits.htm