vikas kesharwani (head) 20 February 2012

138 ni act

Hello Members,

I just had a little query. can a stop payment cheque if bounces put to legal case? I had sent a notice to acused abt the cheque bounce, in reply i found that the cheque was put to stop payment as it was stolen. can it be process for legal action?

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8 Replies

rahul (je) 20 February 2012

i gave check of 8000 to karan on16/11/11.he came to me after one month saying that cheque has been lost and i give him 8000 cash and cancelled the cheque but after 10 days he deposited the same cheque and it bounced on 5/12/11.now he is demanding money from me and threatening to file a criminal case againt me. can he do so.what can i do.pls help

Nandagopal Rao (Retainer) 20 February 2012

Yes. As per the recent decision of Hon'ble Supreme Court in Goa Plast (P) Ltd. Vs. Chico Ursula D'Souza (Dt. of Judgment 20-11-2003), STOP PAYMENT comes under section 138 of N.I. Act. Procedure of issuance of notice and filing of complaint should be as prescribed under section 138.

Nandagopal Rao (Retainer) 20 February 2012

He can do so. Burden is on you to prove that cash amount paid was in lieu of the lost check. How you cancelled the lost cheque? Did you obtain any writing from him?

vikas kesharwani (head) 20 February 2012

Sir thanks a lot for your reply.

R Trivedi (advocate.dma@gmail.com) 20 February 2012

Since you have paid the money but took nothing in writing... What can you do if the cheque is with him ? Do not pay him anything right now, keep bluffing along with his threats. In all likelyhood he will not file the criminal case, it is not worth Rs. 8000/-. Still if he does, pay him and get rid of him. Just cross check that notice is in the limitation period, before proceeding.