Non-cts compliant cheque
Sanjay Kulkarni
(Querist) 02 March 2014
This query is : Resolved
Since non-cts cheques are discontinued, can a financial institution present a old non-cts cheque given for loan purpose, and if so can defence be taken as to validity of the cheque in case of dishonour?
Devajyoti Barman
(Expert) 03 March 2014
Yes, it also attracts provisions of NI Act.
Vidhi Joshi
(Expert) 03 March 2014
It is duty of financial institution to intimate the borrower and ask him to provide with fresh cheques.
T. Kalaiselvan, Advocate
(Expert) 04 March 2014
Since non cts cheques are invalid these days, defence can be taken on that ground.
malipeddi jaggarao
(Expert) 05 March 2014
If the cheque is dishonoured on financial reasons, non-cts cheque will not a valid defence.
Dr J C Vashista
(Expert) 09 March 2014
I agree with experts since it attracts provisions of NI Act,1881
V R SHROFF
(Expert) 09 March 2014
138 N.I. is equally applicable.
Anirudh
(Expert) 09 March 2014
When non-CTS cheque was presented by the Financial institution to the Bank, naturally the same will be returned unpaid, obviously for the reason that it is a non-CTS cheque.
Upon such return of the cheque by the Bank, the Bank would issue a statutory notice u/s. 138 N.I. Act, calling upon the drawer of the cheque to make good the money.
It is at this stage, the drawer has to exhibit his bonafide by making good the money to the Financial Institution - if he fails to do so, offence under Sec. 138 gets committed and the defence of non-CTS cheque etc., would not come to his rescue.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 09 March 2014
There is only rider that if the said FI truthfully claims that it received the post dated cheque and the date it was received by them is mentioned than only it is legal otherwise not.
The cheque law is very short and so it is just not possible to present a full proof case.
So it is easy for any defense lawyer to find mistakes, lapses in any complaint for cheque bounce.
In the present case the FI may have taken blank cheque earlier and did not bother to get it replaced and may have filled the current date and got it bounced.
If such circumstances are there than it will be easy sure and simple to come out of the case for the accused.
