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Sanjeev Kuchhal (Publishers)     22 January 2015

At par cheques

Dishonour of cheque _ At par cheque _ RTGS system is only the system for expediting payment and does not expand the concept of "drawee bank" _ Branch which processes the cheque can only be called as the processing or facilitator branch but cannot be called as the "drawee" within the meaning of Section 7 N.I. Act _ There can be only one drawee bank and not several _ When the RTGS cheques bear an endorsement "payable at all our branches" it only means "payment instructions expedited" enabling receipt thereof immediately _ Dishonour of cheque takes place because of failure or refusal to transfer funds and it takes place at the place where the bank which so fails or refuses, which is the "drawee bank", is situated _ Court within whose territorial jurisdiction the drawee bank has dishonoured the cheque has jurisdiction to deal with the complaint filed u/s 138 of N.I. Act. (See 2015 (1) LJSOFT 1)

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