Negotiable Instruments Act.
allurisivajiraju
(Querist) 28 November 2008
This query is : Resolved
Respected Seniors,
Mr. 'A' Received a cheque drawn on Bank 'B' from Mr. 'C'. Then after obtaining cheque and Before filing the said cheque for presentation the said bank 'B' was regulated by Sec. 35 A of Reserve Bank of India which resulted the entire transactions of the Bank 'B' were stoped.
In the above circumstances Mr. A Presented his cheque in his account. It was returned with an endorsement " There is no person to collect the cheques of Bank 'B' at the clearing House".
Now what is the otion available to Mr. 'A'. Whether basing on the said endorsement can he file a case under section 138 and 142 of the N.I.Act against Mr. 'C'.There is a time for issue notice.
Thanking You Sir.
smilingadvocate
(Expert) 28 November 2008
NO IT CANNOT BE FILED AND SECTION 138 WOULD NOT ATTRACT.BUT IF THE BANK HAS BEEN CLOSED OR TAKEN OVER BY THE RBI MUCH EARLIER TO THE ISSUANCE OFTHE CHEQUE, THEN U CAN LODGE A COMPLAINT UNDER SECTION 420 OF IPC ONTHE GROUND OF CHEATING.
podicheti.srinivas
(Expert) 29 November 2008
in the present case there is no dishonour of the cheque by the party.i t was only happened because of efflux of statute.as there is no dishonour from the other side.now you have a recourse to the best of my knowledge you can issue a notice stating that there is an impediment for you to cash the cheque and ask him to issue afresh cheque on a different bank or pay your debt off with in areasonable time.if at all he doesnt pay you the money or issue afresh cheeque you may procced against the person for cheating.you take the help of an advocate nearby your place for further assistance.
Suresh Kr. Mitruka
(Expert) 29 November 2008
Demand Notice be issued and if he does not respond, prosecution may be started for cheating and proceeding may also be commenced for realization of money through Money Suit separately.
