cheque bounce

Querist : Anonymous (Querist) 07 September 2010 This query is : Resolved
i ve opened an account in 2008 but account closed now. so the security cheque i ve given to the bank against my loan can be used to bounce even after my bank account is closed and file a case of section 138. please answer...

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R.Ranganathan (Expert) 07 September 2010
yes. If you want to escape from Sec. 138, you issue some other cheques in place of the present ones and inform them not to present the existing cheques since you have closed the account.

Prakash Yedhula (Expert) 07 September 2010
'Account closed' - Offence is made out - Not necessary that bank account should be alive at the time of presentation of cheque. (NEPC Micon Ltd. Vs Magma Leasing Ltd)