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aditya sharma (po)     06 April 2014

Cheque will be considered as bounced if we put stop payment

Hello everyone !!

 

My father has issued a undated cheques to a bank acting as a  gurantor .

If I default the payment then what will happen ?

And in case my father put a stop on cheque now or close his account with the bank  then what will happen ?

Shall bank will give a notice to my father before clearing the cheque ?

 

Please reply



Learning

 8 Replies

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     06 April 2014

it will attract 138 N i Act

uphar upadhyaya (na)     06 April 2014

Two diff. Matters firstly guarrentrer then cheque

Advocate Bhartesh goyal (advocate)     06 April 2014

[1] In case,you being defaulter in making instalments,The bank will recover the outstanding and due amount from you by filing recovery suit against you and your father.

[2] In case of default in making payments to bank by you, and your father being a guarantor instruct bank to stop payment of cheque or close his bank account, ,bank will initiate proceedings u/s 138 of N.I.Act against your father by giving a notice to him.

Shantilal Pandya ( Advocate)     07 April 2014

 Section 138 of N I Act is attracted

Sudhir Kumar, Advocate (Advocate)     07 April 2014

have you taken loan

Sudhir Kumar, Advocate (Advocate)     07 April 2014

your father has given a guarantee cheque to the bank so as to induce the bank to give loan to someone (apparently you).

 

the bank acted in good faith and gave the loan

 

the loanee (apparently you) do not intend to refund the loan.

 

now your father will give stop payment instruction very good

 

Apparently your father did never  tell the bank that he is giving the cheque but will give stop payment when loanee (apparently you) defaults.

 

You also did not disclose any such intention to Bank.

 

JAIL IS THE ABODE OF SUCH PERSONS AS 420 CASE WILL LIE AGAINST BOTH OF YOU.  Plus your father will fact criminal case u/s 138 of NI Act.

Sudhir Kumar, Advocate (Advocate)     07 April 2014

your question

 

Shall bank will give a notice to my father before clearing the cheque ?

 

Ans : WHY

R Trivedi (advocate.dma@gmail.com)     08 April 2014

I liked the humour of Shri Sudhir Kumar.

 

Please confirm if the Bank, has given you loan just based on the cheque leaf of your father as the security/guarantee ?? Or does the bank have some other assets of yours mortgaged against loan ? 

 

If bonafide assets are with the bank as collateral, then neither 420 nor 138 is applicable.  


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