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Harrassed _by _498a (Executive)     21 January 2021

Cheque Bounce and Positive Pay

Everyone knows that cheque issued under friendly loans are security cheque in case if such security cheques presented for more than 50K value. bank will bounce it or treat it as fraud cheque as there will be no update by the issuer in positive pay system for that cheque.

Please advise.


 3 Replies

Advocate Bhartesh goyal (advocate)     21 January 2021

If sufficient amount to encash cheque is not lying in account than definitely bank will dishonour cheque.Security cheque also comes under the purview of sec 138 of N.I.Act

Harrassed _by _498a (Executive)     21 January 2021

Than what is the benefit of positive pay system ?

Adv. Mohit Chahal (Advocate)     28 March 2021

Friendly loan is acceptable as legally enforceable liability under section 138 N.I. Act. If any cheque is given as security of friendly loan and it gets dishonoured then issuer of that cheque is liable under section 138 despite the amount of cheque.

Mohit Chahal
District Courts, Hisar

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