Re presentation of Bounced Cheque
Nirmaan Shyamsukha
(Querist) 11 March 2010
This query is : Resolved
can a bounced cheque on account of closed account can be presented again for the purpose of filing case under section 138 of Negotiable Instruments Act, 1881?
can a bounced cheque on account of closed account can be presented again ?
Raj Kumar Makkad
(Expert) 11 March 2010
Yes. He can present such cheque again and can thereafter serve mandatory legal notice and 138 NI Act shall be attracted if despite of notice the accused do not deposit the amount of cheque as demanded therein within the stipulated time.
Sukhija
(Expert) 11 March 2010
No, he cannot.
Jithendra.H.J
(Expert) 11 March 2010
it is a repeated query,
Makkad ji, I never expected the above answer from you!
Sukhija is right, cheque cannot be presented if it is bounced for the reason that 'account is closed'
Arvind Singh Chauhan
(Expert) 11 March 2010
Please go through the citation-
Notice issued on 15-06-1998- Respondent intimating on 20-06-1998 that envelope received by him was empty and without contents- Complainant presented cheque again to bank on 1-07-1998 on abundant caution since statutory period for complaint was to expire- Cheque again dishonored on 2-7-1998- Registered notice again sent and received by accused on 2-07-1998- Complaint filed on 9-9-1998- Whether complaint barred by limitation- Held- No- SC- SUPREME COURT CRIMINAL DIGEST (2000 to 2005)-135., Cr.L.J-2001-972.
Guest
(Expert) 11 March 2010
I wonder comments negating the re-presentation of bounced cheque for "Account Closed". Even recently, I advised my client to re-present a cheque that was first returned as Account Closed. He re-presented the cheque and based upon second time return for the same reason, I sent a legal notice and also I filed the s.138 complaint which has been admitted and pending in a magistrate court at Chennai. Hence I firmly say that there is no law restricting the complainant's right of re-presenting the bounced cheque may be returned for any reason including "Account Closed".
Raj Kumar Makkad
(Expert) 11 March 2010
2005 (1) CCC 0690 is a citation which has been repeated in various subsequent citations vide which it has clearly been help that it attracts 138 NI Act in the given facts. Jithendra ji, I have just told legal position and I never claim that I am supreme power and cannot make any error.
Jithendra ji! In the following case cheque was bounced thrice even then cause of action was deemed from the date of notice and complaint was duly entertained:
Ashok Kumar Aggarwal versus State of UP & another 2006 (2) Cr. CC 1041 (Allahabad)
B K Raghavendra Rao
(Expert) 11 March 2010
Sri Gurunarayana Rao, as you said there is no law restricting the complainant's right of re-presenting the bounced cheque with remarks "Account closed" but that would not come within the ambit of NI Act. Read Section 138 once again.
There may be instances where courts have admitted the cheque bounce - Closed Account - cases but if they are challenged in higher courts, the results would be otherwise.
Parveen Kr. Aggarwal
(Expert) 12 March 2010
The query is not whether a cheque returned dishonoured for reason 'account closed' would be covered under section 138 of the Negotiable Instruments Act, 1881 or not.
The query is whether a cheque can be presented for payment again when it dishonoured on the ground of account closed. It seems quite illogical that any prudent person will again present a cheque drawn on the same bank account when he already knows that the cheque cannot be honoured because no such account exists and how can he expect that that cheque will be honoured.
Nirmaan Shyamsukha
(Querist) 12 March 2010
Praveen ji, my Query is that , do i have a legal backing to represent the bouced cheque again , which was dishonoured for reason "Account Closed" to file a suit under section 138 of NI Act?
Though there is no logic to repesent the cheque again, but as we have exceeded 15 days to send written notice to the party, can we represnt the cheque to revalidate the time to send notice?
Guest
(Expert) 12 March 2010
The time limit for sending the notice is within 30 days not 15 days. even you again deposit the cheque which has earlier been dishonoured for the reason of 'account closed" then limitation of notice will start from the subsequent date. there are number of apex court judgments on this point.
Guest
(Expert) 12 March 2010
i do agree with gurunarayana rao. I also ve the same facts here in the case of sec 138 NI Act.
Parveen Kr. Aggarwal
(Expert) 13 March 2010
There is no legal bar in presenting a cheque again when it has been dishonoured previously on any ground, including the reason 'account closed'.
Nirmaan Shyamsukha
(Querist) 15 March 2010
Thank you all the experts, who have participated in the query.
