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

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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.

Ms.Usha Kapoor (Expert) 04 January 2017
Agree with Goyal.

Ms.Usha Kapoor (Expert) 12 July 2018
AGREE WITH RK Goyal.

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Payment stopped by the holder because of non supply of material

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