stop payment of cheque without intimation to drawee

Querist : Anonymous (Querist) 19 January 2010 This query is : Resolved
Sir,

I was issued a cheque for a certain amount and then later informed that a stop payment order has been made on this. This was done without my consent. Can I charge them with an offense?

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R.R. KRISHNAA (Expert) 19 January 2010
Yes, you can make them liable under criminal law for causing you mental agony and harassment.

Querist : Anonymous (Querist) 19 January 2010
But is it a criminal offense to do so without intimation to the drawee? I will not be able to prove and legal debt by them nor is their accaount short of funds.

R.R. KRISHNAA (Expert) 19 January 2010
It amounts to cheating.

B K Raghavendra Rao (Expert) 19 January 2010
File a complaint in the Magistrate's Court under Section 138 of NI Act for cheque bounce

Arvind Singh Chauhan (Expert) 19 January 2010
In plane reading of section 138, stop payment is not covered under 138. Recently Uttarakhand HC held.

B K Raghavendra Rao (Expert) 19 January 2010

As the stop payment is without prior intimation to the cheque holder, it attracts Section 138 of the NI Act. So far as complainant is concerned, he is holding a valid cheque, account is running but the cheque is returned unpaid. Had, the cheque drawer given valid notice to the drawee for sufficient reasons, then Section 138 does not apply.

Sachin Bhatia (Expert) 19 January 2010
File a complaint u/s 420 of IPC

Sukhija (Expert) 21 January 2010
I agree with experts.

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