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Atul Sohoni   01 December 2021

Stale cheque

Suit for money recovery of stale cheques filed, court wrongly held that cheques firstly should be presented in bank for encashment, then thereafter one can file suit for recovery.

Is this finding is proper as per negotiable instrument act sec 64, 72, and 84? 

Is this is proper finding of court ?



 1 Replies

Anaita Vas   01 December 2021

According to Section 64 of The Negotiable Instruments Act, 1881, promissory notes, bills of exchange and cheques must be presented for payment to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder as hereinafter provided.

According to Section 72 of The Negotiable Instruments Act, 1881, Presentment of cheque to charge drawer. —Subject to the provisions of section 84] a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer.

According to Section 84 of The Negotiable Instruments Act, 1881, where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person on whose account it is drawn had the right, at the time when presentment ought to have been made, as between himself and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of the banker to a large amount than he would have been if such cheque had been paid.

Have you presented the cheque in the bank for encashment? If yes then file another case stating that you've presented it. If no, then you need to what has been instructed by the court.

 

Regards,

Anaita Vas

 


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