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v.lakshminarayanan (prop)     09 February 2010

section 138 & electronic clearing

dear members

as you all may know, many of our banks are now networked. they are now clearing the cheques by electronic clearing.

my friend recently had the cheque issued to him returned by the bank which tried to clear the cheque electronically. 

but the bank was not the actual branch where the payee's account was held. the bank which returned the cheque was on a city dfiferent from the place of issue and the cheque was not sent to the payee's bank. the bank is also not giving any intimation for the dishonour.

in this case, my friend wants to know if the section 138 of NI act is attracted in case of electronic clearing. since there is no dishonour memo, how is he going to proceed further? where can he sue the other party?

learned lawyers and bankers, please clarify.



Learning

 5 Replies

Anil Agrawal (Retired)     09 February 2010

 Write to the bank Chairman.

A V Vishal (Advocate)     10 February 2010

It is a clear case of cheque dishonor and it is mandatory for the bank to intimate the return along with the memo, in case they are not complying complain to the higher authorities and no action is followed up write to the banking obudsman.

Ashwani Sharma (Pro.)     11 February 2010

 thats why security chques.

Sagar Bhatia (Lawyer)     13 February 2010

There is judgment of Gujrat High COurt in same matter. The name of Judgment is Surenderpal Singh Chawla Vs. State of Gujrat. In this case Cheque was drawn on ICICI Bank Kanpur and was presented at Gandhinagar for collection. Cheque was not sent to ICICI Branch at Kanpur for collection . The Bank at Gandhi Nager verified through core-system and online banking that there was no funds in the account of the drawer. The Court held that drawer guilty of offence under Section 138 of Negotiable Instruments Act.  You can find this judgment on website of Gujrat High Court

Suresh CSLLM (Service)     16 February 2010

I think following RBI guidelines and relavent regualtion, A Bank has to inform the payee / payer. If bank is not disclosing, it can be alleged the bank as to accomplice the offence and can be party.


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