Stop cheque payment
Ragvendra Singh
(Querist) 26 December 2013
This query is : Resolved
as per NI act says that if a cheque is dishonoured for insufficiency of funds then it is a criminal offence with punishment upto 2 years and double the fine.
What about stop payment of cheque? i have issued a citi bank cheque of my account to a company which i have stopped later as i decided that i do not want to take their service. can that company sue me under ni act for dishonour????
M.Sheik Mohammed Ali
(Expert) 26 December 2013
stop payment also offense but you send to them legal notice to for real fact and give reason to avoid of stop payment
V R SHROFF
(Expert) 26 December 2013
stop payment also attract NI Act.
But if u did not avail services, you are not liable to pay, so no NI. ACT 4 u.
V R SHROFF
(Expert) 26 December 2013
state detailed facts.
state detailed facts.
state detailed facts.
state detailed facts.
Hi Mr. state detailed facts.
V R SHROFF
(Expert) 26 December 2013
nothing to add more.
nothing to add more.
nothing to add more.
nothing to add more.
Hi Mr. nothing to add more.
Rajendra K Goyal
(Expert) 26 December 2013
Send a notice / letter to the company that you have stopped the payment due to reasons mentioned also instructing not to present the cheque.
Ragvendra Singh
(Querist) 26 December 2013
Thanks all of you. but the thing is the cheque was given to a agent of publication company whose number i dont have now. Is it fine if i send an email to the head office of the company obtained on their website mentioning the cheque number and reason?
ajay sethi
(Expert) 26 December 2013
send email / also letter by regd Post Ad mentioning that you have stopped payment of cheque as you do not want to avail of its services
DEFENSE ADVOCATE.-firmaction@g
(Expert) 26 December 2013
Negative defense does not work in criminal cases and particularly in CHEQUE BOUNCE complaints.
APEX COURT IN 2012 has said that :-
The court may not insist upon the defendant
to disprove the existence of consideration by leading direct evidence as the existence of negative evidence is neither possible nor contemplated and even if led, is to be seen with a doubt.”
Again for STOP PAYMENT the apex court says:-
expression “amount of money …………. is insufficient” appearing in Section 138 of the Act is a genus and dishonour for reasons such “as account closed”, “payment stopped”, “referred to the drawer” are only species of that genus.
14. A three-Judge Bench of this Court i has approved the above decision and held that failure of the drawer of the cheque to put up a probable defence for rebutting the presumption that arises under Section 139 would justify conviction even when the appellant drawer may have alleged that the cheque in question had been lost and was being misused by the complainant.
SO ONLY OPTION IN SUCH CASES IS TO DISPROVE THE STORY OF THE COMPLAINANT THAT THERE WAS NO LEGAL LIABILITY AND TAKING ADVANTAGE OF OTHER TECHNICAL MISTAKES.
Arvind Singh Chauhan
(Expert) 26 December 2013
search apex court's judgment-
M/s Laxmi Dyechem …Appellant
Versus
State of Gujarat & Ors. …Respondents
With
CRIMINAL APPEAL NOS. 1910-1949 OF 2012
(Arising out S.L.P. (Crl.) Nos.1780-1819 of 2011)
Ragvendra Singh
(Querist) 26 December 2013
stopping cheques is very very very very dangerous then ?????? isn't it???? if this is the legal position ..... it is better to lose all our money and sit tight ... instead of stopping it and then send them official notices and sitting in tension as to what reply they will give to our notice .... this law in the name of protecting the innocent victimes them even more ....
DEFENSE ADVOCATE.-firmaction@g
(Expert) 26 December 2013
What APEX COURT has said in many jugments that :-
A post-dated cheque will lose its credibility and acceptability if its payment can be stopped routinely. The purpose of a post-dated cheque is to
provide some accommodation to the drawer o f the cheque.
Therefore, it is all the more necessary that the drawer of the cheque should not be allowed to abuse the accommodation given to him by a creditor by way of acceptance of a post dated cheque.
HOWEVER THE ACCUSED CAN DISPROVE THE CASE IF THERE IS NO LEGAL LIABILITY BY CONTRADICTING THE EVIDENCE OF THE COMPLAINANT .
THERE ARE ALSO MANY TECHNICAL LAPSES AND SO ACCUSED CAN VERY EASILY COME OUT OF THE CASE BUT FOR WHICH EXPERT LEGAL ASSISTANCE IS NEEDED.
Guest
(Expert) 26 December 2013
Dear Querist The Stop Payment of the cheque would be Legally acceptable if is supported with strong legal reasons for the same.So apart from mail you also send the same by Registered post explaining the Reasons of Stop Payments in legal terms.You could take the help of an advocate in drafting the letter to avoid future complications
Guest
(Expert) 26 December 2013
Dear Querist The Stop Payment of the cheque would be Legally acceptable if is supported with strong legal reasons for the same.So apart from mail you also send the same by Registered post explaining the Reasons of Stop Payments in legal terms.You could take the help of an advocate in drafting the letter to avoid future complications
Nadeem Qureshi
(Expert) 26 December 2013
Dear Querist
first of all think about consequences then issue the cheque. think first you issue the cheque to other party, the party represent the cheque in bank for encashment, the company's bank send the cheque in bank to encash, the cheque got bounce, then the bank send a memo to the party with reason of bounce and deduct bouncing charge .
think you simply said i stop the cheque.
law is not a game......
it is my opinion, dont take otherwise.
Guest
(Expert) 26 December 2013
Dear Querists The Stop Payment is a common factor and it depends on the necessity,circumstances and changes in decisions etc.Everthing cannot be certain.So do as advised above.
Raj Kumar Makkad
(Expert) 28 December 2013
I do agree with the detailed advice of experts.
Ragvendra Singh
(Querist) 28 December 2013
ok thanks to all of you. I am not sending them any notice. they might even forget the matter as they are dealing with hundreds of clients .... if i send them a notice, the matter will become serious .... Let them send me a notice of demand... Since i have only agreed to avail the services, and not actually availed the services they cannot hold me liable and i will easily disprove their stand in the court ...
sincere thanks to all of you, as it has helped me gained an insight in the matter.
Rajendra K Goyal
(Expert) 28 December 2013
You have issued cheque and preferred for not taking services without informing them and stopped the payment of the cheque, your step does not justify stoppage of cheque.
