stop payement of the cheque can lead 138

Querist : Anonymous (Querist) 17 May 2010 This query is : Resolved
Respected sir
I had issued a PDC cheque of rs. 30,000/- to MR. X. Before the cheque came into force I paid him the amount and demanded cheque back and informed the bank to s stop the payment of the cheque. he told me that the cheque is kept at home I asked him to give me a note of cancellation. he and his friend who is gave hand written note of cancellation.
Now he has filed a criminal suit against me u/s 138.
Does stop-payment of the cheque is a criminal offence?

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Daksh (Expert) 17 May 2010
Dear Anonymous,

As a matter of fact as it is evident from your post under reply you have mentioned that before filing the complaint u/s 138 you have got hand written note for cancellation.
Before initiation of complaint you must have recieved a statutory notice as well (you could have mentioned the fact of non existence of legal debt in its reply as well).
Otherwise now in your defence as a preliminary objection you can raise your bonafide of settling the debt before the complaint is being filed.
All the very best.
Best Regards
Daksh

Uma parameswaran (Expert) 17 May 2010
Stop payment of the cheque is not a criminal offence.

B K Raghavendra Rao (Expert) 17 May 2010
Stop payment is not an offence provided payment is stopped for valid and justified reasons. In your case, if your friend to whom the cheque was issued, has given in his handwriting, the acknowledgement for having received the amount and duly signed, you are legally justified in issuing stop payment instructions. Case against you under Section 138 would not stand.

PALNITKAR V.V. (Expert) 20 May 2010
Under the given circumstances, it is no offence.

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