Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


lawas against Stop Payment Cheque

Hi All,
I have invested money against a scheme and dealer promissed me to return this amount with certain benefits.
When He give me first payment by cheque and I depost it to my account , I was so scared when I got a SMS from bank that may cheque was not cleard due to Stop payment from the dealer, this is fraud. How I can complain against it.

Please help me out payment is still due and dealer is cheating me.


 11 Replies

Vibhor Verdhan (Lawyer)     11 February 2011

Kindly provide me the detail information on the same and ASAP on;

M.Sheik Mohammed Ali (advocate)     11 February 2011

you may lodge a complaint  against them, and filing NI 138, cheating in IPC 420, and chit fund act 1962 make a complaint against them.

G.Nagarajeshwar Rao (Advocate)     11 February 2011

You may lodge a complaint under section 138 N.I.Act.  

Advocate (Lawyer)     11 February 2011

you may institute a suit for rendition accounts becaue you have admitted that you have invested the amount ....

2nd - you may lodge an FIR for dihonour of cheque.

Radhey (Owner)     12 February 2011

I feel all the ppl have replied u wrong-------




plz. study this link of mine,certainly would be helpful,also request to give me feedback



esp.  this link would make it ckear to U that stop payment/account close does not fall under 138 NIA,feedback plz.

1 Like


Yes I have studied 138 NIA and found that if a person's account is closed or if cheque is post-dated (such as instalment cheques issued while borrowing money) it does not fall under 138 NIA. 


Even otherwise it is very defficult to win a NI 138 case. If proper steps are taken from day one , no conviction possible in any cheque bounce case.

G.Nagarajeshwar Rao (Advocate)     13 May 2011

stop payment is on various grounds. The amount under cheque is stopped by the account holder. If there is no valid ground to stop payment, then the section 138 of N.I.Act will be operative. But at once you can not lodge a complaint under section 420 of I.P.C. as well as under section 138 of N.I.Act. There are so-many judgments with regarding to this aspect. 


It is an effective law. I am not an expert but I have fought and won 138 NI case about 9 years ago. I sent a notice through lawyer but wrote the appeal myself and appeared for all hearings. The dafaulter paid double the amount of cheque after 1.5 year and we withdrew the case. He was so afraid! :D I purchased a small booklet about 138 NIA from court premises and didn't need much else.


It is not that easy now , law has developed since than. Counter action is possible on the person filing the case.

Ashwini Kumar Sharma (n)     22 April 2012

Hi all, 

i gave the cheques of 10 lac, againts business credit security.. but we dont have any thing in written regarding that..

now the total debt on us is of 4 lac..

so after paying the complet debt, can the cheque holder make us liable to pay the cheque amount..

if yes.. what is the solution...?

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query