Civil Procedure Code (CPC)

Non cts cheque

manager

One my customer has given me non CTS cheque. Recenly I deposited this non CTS cheque and Bank has returned me with Memo as non CTS cheques are not processed. Can I  send a notice to my customer on 138 NI Act or there any other options?

 
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LEGAL

Just issue the leagla notice followed by 138 NIA


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Retired Manager

No. Section 138 can be invoked only when cheque is returned for want of funds.
 
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Retired Manager

No. Section 138 can be invoked only when cheque is returned for want of funds.
 
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Retired employee.

The banker is at fault.  There were no such clearing and digitalization in the past, and banker should accept any instrument and send it as an outward bill for collection or local bill for collection.  Immediately make online complaints and issue a notice to Bank under CP Act for deficiency of service. and the bank is liable to pay huge compensation equal to the value of cheque for this deficiency of service if there is a delay in presenting the cheque.  Within a week, you can expect a phone call from the Bank to deposit the cheque in your bank account.

 
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Retired employee.

A cheque is a cheque as per the Negotiable Instrument Act.  The collecting banker must accept any cheque and get it collected as per laid down procedure.  The banker may not present it directly through clearing but he can send the same by post to the paying banker and can seek proceeds by way of demand draft or RBI cheque.  No banker can reject such instruments.  (Bankers even purchase and collect hundis for their customers)

 
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Retired Manager

Query referred to the forum is whether Section 138 can be made applicable. The answer is no.
 
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manager

Customer is not ready to give the CTS cheque. Can I send a notice to pay money or give new Cheque?

 
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