cheque return.
ajay kumar
(Querist) 13 August 2008
This query is : Resolved
i take pl from one mnc bank in India.due to money crisis i not able to pay my emi regularly, now bank used my security cheque for payment of pl and that cheque return due to "stop payment".now what can i do.
sir bank not give me any loan recall notice etc....but they used my security cheque for full amount of loan.can they present security cheque for full amount or JUST EMI AMOUNT DUE ON EMI.
Srinivas.B.S.S.T
(Expert) 14 August 2008
Sir I have already answered your query in the forum. However I want to reiterate that once a cheque was issued is issued and unless until the contrary that you have not issued the cheque in discharge of a legal debt you cannot escape from the liability under NI Act.
ajay kumar
(Querist) 14 August 2008
thanks for reply sir,that exactly i want to know if i taken a loan and my 10 emi due....then bank only use my security cheque for up to rs. 50000.00 only they can not used that cheque for 1 lac or 2 lac.
if bank give recall notice then i think they can ask full loan amount and they can use my cheque for full loan amount due.but without recall notice they can do that?
Srinivas.B.S.S.T
(Expert) 14 August 2008
Yes the bank cannot use your cheques more than the amount due from you. Banks are no private/daily financiers. Tell me in the first instance have you issued balnk cheques to the bank or what?
ajay kumar
(Querist) 14 August 2008
yes sir i issued some blank cheques to bank.now bank used one of them and that cheque return due to "stop payment"
Srinivas.B.S.S.T
(Expert) 14 August 2008
Sir though you have issued blank cheques the bank cannot fill them for an amount desired by them. The bank can either fill them for an amount equivalent to monthly EMI amount or the total outstanding of your loan amount. but in either case you have to face criminal prosecution.
ajay kumar
(Querist) 14 August 2008
i this case sir if bank used cheque for wrong amount...what can i do sir....can this case will be dismissed by court.can i file any case on bank.....sir one more thing what is 142 n.i.
Srinivas.B.S.S.T
(Expert) 14 August 2008
Section 138 and 142 of Negotiable Instruments Act connotes that if a person issues a cheque in discharge of a legally enforceable debt without having sufficient funds in his account to honour the same he is punishable under those sections. Sorry to say that even if the cheque returned under the endorsement payment stopped by the drawer oraccount closed will equaly attract those proviso. But in your case the bank cannot fill the cheque for unreasonable amounts as it cannot prove that you have issued cheque in discarge of the same. It can fill the cheque either for the EMI amount or for the full settlement of the loan amount. Lest it cannot prove that you have issued the cheque in discharge of legally enforceable debt.
ajay kumar
(Querist) 14 August 2008
for reaming cheque i need to send any legal notice or something in adv.
Srinivas.B.S.S.T
(Expert) 14 August 2008
Yes you have to send a legal notice mentioning the cheque numbers as well the entire transaction. Do mention that as the bank has filled the cheque for entire loan amount the rest of the cheques are to be returned by the bank. You can file a complaint also with that regard.
K.C.Suresh
(Expert) 14 August 2008
Dear Ajay,
When you are issuing a blank cheque you yourself are obliging and binding on the payament of your dues U/ 138. But for 420 IPC (Cheating) a blank cheque may not attract cheating or criminal liability. But U/s 138 NI Act your are liable for the blank cheque signed by you if the owed debt is correctly noted in the cheque. There is no need of any intimation from the bank before submitting the cheque or using the cheque given as security. Under NI Act they have given legal notice for giving you sufficient time to pay the dues liable by you to pay. No scope for a favourable stand. However you keep going on with your case because without money how can one pay it. With regards.
Srinivas.B.S.S.T
(Expert) 15 August 2008
Dear Ajay hope your doubts are cleared. If you have any further doubts you can contact me at s_bsst@yahoo.com or can call me at 94401-20259. Regards. Srinivas BSST
