correction in cheque, not signed there in retuened cheque
PRANAV S THAKKAR
(Querist) 31 January 2010
This query is : Resolved
SIR, HERE A CASE OF NEGTIABLE INSTRUMENTS ACT SECTION 138, HERE THERE IS A LOAN TAKEN ON LAND. THEN AS PER SECURITY, CHEQUES WERE GIVEN BY THE DEBITOR WHO IS ACCUSED, WITH HIS SIGN. BANKER HAD MADE MISTAKE TO WRITE DATE, N THEN WRITTEN A DATE THERE. BUT NOT TAKEN THE SIGN OF THE ACCUSED NEAR THE CORRECTION, THEN HE WAS A BANKER, SO, HE SEND CHEQUE TO CASHIER, HE RETURENED THE CHEQUE WITH WORDS" INSUFFICIANT FUND" N MADE COMPLAINT. CAN WE MAKE DEFANCE, CINSIDERING IF THERE IS NOT SIGN THERE, WHERE IT IS NECESSARY. CAN I HAVE DEFANCE ON BASES OF THAT?
Srinath Kondapally
(Expert) 31 January 2010
less chances for defence,better to plead and expose that so called cheques were issued for the purpose of security.
Raj Kumar Makkad
(Expert) 31 January 2010
Security purpose cheque also if bounced attracts 138 NI Act so there is only little chance to be discharged on the basis of cutting over cheque and payment without obtaining signature thereon.
B K Raghavendra Rao
(Expert) 01 February 2010
Signature for correction, etc., are a contract between the account holder and the bank, you cannot have a defence about it. What you are bothered about is when the cheque is presented it was not honoured on the grounds of insufficiency of funds. It is sufficient for making out an offence. If the correction in the cheque is not countersigned, it is for the bank to insist on that and honour or dishonour on that ground.
PRANAV S THAKKAR
(Querist) 01 February 2010
thanking u to all sir! so that case is to be compromised by both parties may be better option.
