LAW Courses

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Stop Payment

(Querist) 14 January 2009 This query is : Resolved 
Hi All,
I'm new to this forum.
I want to ask whether "stop payment" of the cheque is covered under 138 NIAct?
I mean to say may I file a case U/s 138 NIAct against Stop Payment?
PALNITKAR V.V. (Expert) 15 January 2009
Yes if you stop payment without proper justification you can come within mischief of Sec. 138.
sanjeev murthy desai (Expert) 15 January 2009
I agreed with Mr. Palnitkar.

sanjeev desai
AEJAZ AHMED (Expert) 15 January 2009
Dear Satish,

Exactly, you can, if Cheque "Dishonoured" with the reason of "Stop Paymet".

STOP PAYMENT OF A CHEQUE :

In spite of the civil remedy, Sec.138 is primarily meant to prevent dishonesty on the part of a drawer.

Sec.138 draws presumption that one commits the offence if he issues the cheque dishonestly and cheque has been drawn and issued to the payee and the payee as the presenter of cheque and thereafter , if any instructions are issued to the bank for non-payment and the cheque is return to payee with an endorsement ‘payment stopped by drawer’, it amounts to dishnour of cheque.

Following is the Judgemnt for the above said reason:

(1996 (2) SCC 739) =AIR 1996 SC 2339.

" Even if a cheque is dishonoured because of ‘stop payment’ instruction to the bank, Sec. 138 would get attracted "

(1998 (3) SCC 249).

The luxury of “stop payment” instructions by the drawer to cover-up real insufficiency funds would no longer be available to drawer as per the law of the land.
RAKHI BUDHIRAJA ADVOCATE (Expert) 15 January 2009
I do agree with my all Ld. friends n spaecial thanx to Md. Ahmed for providing helpful judgements.
MANISH (Expert) 16 January 2009
Dear Mr. Satish,
I agree by Mr. Aejaz Ahmad. He has guided you the correct.
A complaint U/s 138 N.I.Act may be filed, if the reason for dishonourment is " Payment stopped ".
Satish (Querist) 24 April 2009
Thanks to all ld. experts.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :





Post a Suggestion for LCI Team
Post a Legal Query