V KARTHIK 22 August 2018

Cheque Returned by Bank

A joint account is inoperative, and receives a cheque signed by one signatory . There are no funds to pass the cheque . So it has been returned by the bank as reasoned ; Fund Insufficient.
A Suit has been filed on the cheque signatory by payee under sec 138 .
Weather the reason for return cheque stands good by the Bank in this case . Kindly clarify.

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13 Replies

Adv Deepak Joshi +917017821512 (Advocate) 22 August 2018

Your query does not convey much to me, please elaborate.

V KARTHIK 22 August 2018

The Cheque in the above account has been returned for said reasons ; considering the status of the account , the reason conveyed by the bank is correct or not

Adv Deepak Joshi +917017821512 (Advocate) 22 August 2018

Dear querist,

Bank gave wrong reason is has to be “Account Inoperative”.

You can get it corrected by bank.

Thanks and Regards

Deepak Joshi & Associates

Djaa.legal@gmail.com

Mb/whatsapp +919456777600

V KARTHIK 22 August 2018

in the return memo there is no reason for account in operative , the bank says on receipt of cheque to process it first cheque for funds and since the first check itself failed , they have mentioned reason as Funds Insufficient , is this statement stands good ?

V KARTHIK 22 August 2018

thank you for your interest

shashwat poddar 23 August 2018

Whether account is inoperative or funds insufficient you can file the case under section 138 NI Act with the reason given by the bank.

V KARTHIK 23 August 2018

fine kindly let me know the reason stated by the bank is correct

V KARTHIK 23 August 2018

any one can suggest

shashwat poddar 23 August 2018

Don't go in these details. Go by the cheque returning memo given by the bank. Under both cases sec 138 is applicable.

V KARTHIK 23 August 2018

well sir , even when the account is in operative and has NIL funds the momo with reason as Funds Insufficient stands correct ?

shashwat poddar 23 August 2018

yes its correct. state the reason written on the memo. don't go into those details.

V KARTHIK 23 August 2018

The defence is asking for status of the account ,

Ashish Gupta 28 August 2018

Dear V Kartik

You can mention both the reasons in your filing in a way that it is clearly made understandable to the court that there is an offence committed by reason of cheque bouncing. Courts do understand the same. If the acccout was inoprative , why did the party issued the cheque.. that clearly reflects its fradulent intentions.

Regards

Ashish Gupta