LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Dhirajmal (Owner)     17 April 2014



I have an OD Account (OD Against Fixed Deposit), from the A/c., I had issued a cheque for rights share issue  within the OD limit, bank had dishonoured the cheque with stating reason as insufficient balance and thereby I lost on subscribing to rights issue, kindly advice the course of action that can be taken against the bank.








 6 Replies

mahavir singh (ADVOCACY)     17 April 2014

Claim for damages oe. Deficency in services for more call 09910657998 mahavir singh advocate.

mahavir singh (ADVOCACY)     17 April 2014

Claim for damages oe. Deficency in services for more call 09910657998 mahavir singh advocate.

SeekAdvice India (NA)     17 April 2014

Need Free On-call Legal Advice.???

Just give a missed call on 08010201301(toll free)



India's first On-call legal advisor.

Rajesh Alone (Manager - BD)     18 April 2014

Dear Advocates ,


I have Saving Acoounts in Axis Bank & I have Authorise HDFC bank for ECS Debit of Home loan EMI on 10 th of every Month. But So many times what happends & I had deposited requried cash money in my Axis Bank account on 10 th farely in the morning scedule. but still my ESC got bounce so many times.


Is am i guilty for this ECS  buonce or AXIS BANK IS ON FAULT. Please guide us.




Rajesh Alone

Prasun Chandra Das (Banker)     21 April 2014

To Dhirajmal: If your unutilised balance in the OD a/c is insufficient to cover the amount of chq, the bank is right in returning the chq with the reason "insufficient fund". The figure to consider is not "OD limit" but "unutilised portion of the OD limit", or "the available balance in the OD a/c".


To Rajesh Alone: The simplest solution is to deposit cash 1 working day earlier. It is a typical practical case of exactly when the ECS debit mandate gets executed (done centrally by the Bank) and exactly when the cash is credited to the a/c (done at the branch level). If you are depositing non-Axis Bank chq, please understand the clearing cycle at the location and deposit non-Axis Bank chq accordingly.

malipeddi jaggarao (retired banker)     22 April 2014

@Dhiraj - Verify your OD statement and findout the available amount on the day of cheque return.  If the available amount is sufficient to meet the cheque, dishonouring the cheque is wrongful.  If is not sufficient the act of the Bank is right.  By applying the above test, if you conclude that it is wrongful, take up the matter the Bank.  Claiming damages is not so easy.  You will have to prove that you have sustained the loss actually.  You may have to initiate legal battle for recovery of damages which is lengthy and costly.  


@Mr.Rajesh: Why don't you deposit the amount one day in advance.  If that is not possible, you can even give another mandate for ECS with a different date.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads