Cheque bouncing - bank branch block

Yes, cheque dishonoured due to any reason comes under the purview of sec 138 N.I.Act.

Sir thank you for your valuable information.  But sir under the NI  act this reason of 'branch bank blocked' has not mentioned .

in my understanding, the issue does not come within the purview of NI 138.

Thank you Venu sir for your feed back, can we support any authenticated documents or udgement or any sections  to that effect.

Dear Rucha,

Thank you for your query! I am Aadil and I will try to answer your question.

The short answer to your question is NO. It will not come under section 138 of the Negotiable Instruments Act.

The laws pertaining to cases of cheque bounce are given in the Negotiable Instruments Act of 1881. It defines a case of cheque bounce to be when any cheque drawn by a person on an account maintained by them with a banker, for the purpose of fulfilling a debt or liability, is returned by the bank unpaid, either due to insufficient funds in the account or because it exceeded the amount that was agreed to be paid by the bank from the account as per any agreement made with the bank.

In this case the Reserve Bank of India has blocked that bank, which cannot be considered as a case of cheque bounce as for that the cheque should have been returned unpaid from the bank due to insufficient funds in the account or because it had exceeded the amount agreed to be paid by the bank from the account as per some agreement made with the bank. Therefore it is not the fault of the drawer but the fault of the bank. 

Thus the above case cannot constitute a cheque bounce, but the payee may send a legal notice to the drawer apprising them of the current situation.

I hope this helps. Thank you for your time and patience!

Regards,

Aadil