N i act non cts cheque
durga prasad
(Querist) 28 March 2014
This query is : Resolved
sir,
my question;
are non cts cheques bouncing with out sufficient balance in bank ac, will come under N I ACT or cheque bounce case.
plz clarify me.
M.Sheik Mohammed Ali
(Expert) 28 March 2014
once banker endorsed that fund insufficient then it will come NI 138
ajay sethi
(Expert) 28 March 2014
the bank has returned cheque with remarks funds insufficient . it would fall within ambit of section 138 NI
R.V.RAO
(Expert) 28 March 2014
yes.rightly advised .the criterion for invoking action under sec 138 of NI act is bouncing of cheque (endorsed by bankers as"funds insufficient") but not cts/non cts cheques.
Guest
(Expert) 29 March 2014
The main criteria to judge the offence is insufficient funds, not the CTS or non-CTS cheque,
Rajendra K Goyal
(Expert) 29 March 2014
yes, Non CTC cheques are on equal footing if returned due to insufficient balance.
Surrender K Singal
(Expert) 29 March 2014
CTC or non CTS are recent terms which has no relevance in N I Act
T. Kalaiselvan, Advocate
(Expert) 29 March 2014
I agree with the experts views that NI act recognizes the endorsement 'in sufficiency of funds' as an offence for the bounced cheques, other descriptions of cheque do not find place in the provisions of law for the purpose.
R.V.RAO
(Expert) 30 March 2014
agree with sri singal ji and thiru kalaiselvan ji that NI act does not recognise cts/non cts cheques concept .
NI act squarely deals with bouncing of cheques due to insufficient funds as endorsed by banker.
Advocate. Arunagiri
(Expert) 30 March 2014
If the cheque is returned for insufficient funds, it comes under the purview of s.138.
But, the banker refuse to entertain the cheque itself on other grounds, it will not attract s.138.
R.V.RAO
(Expert) 30 March 2014
rejection of non cts cheques clearance does not arise in india at least for the time being since RBI ,advised clearing of non cts cheques thrice a week since Jan 2014. see the following.
Reserve Bank of India (RBI) - has informed all banks in India that non-compliant CTS cheques need be cleared only thrice a week from January 1.
Reserve Bank of India had earlier set December 31, 2013 as the deadline for issuance of non-CTS cheques.
source: http://www.gulf-times.com/
Therefore i feel cheques may be not honored due to other deficiencies stated under NI act, like overwriting or unattested alterations etc....but cts/non cts cheques is not a criterion at least for the time being, for not entertaining cheques by bankers.
sec.138 criterion of insufficient funds for bouncing of cheques stands taller as at any time.
Surrender K Singal
(Expert) 31 March 2014
RVR is well informed and so helpful for even the Experts
