sec 138 of negotiable act
rajashree
(Querist) 26 March 2011
This query is : Resolved
" stop payment" is offence u/s 138 of N. I. Act?
M.Sheik Mohammed Ali
(Expert) 26 March 2011
what is the reason to stop ? you ask giver on the cheque,
in case the cheque hold missing the his cheques leaf, the cheque holder immediately inform to bank for stop payment, and other reason, so you must ask cheque giver
V.S.Massaaun
(Expert) 26 March 2011
As per Sec 138 of NIA if bank return the cheqye by saying Insufficent Funds ot exceed the the limit arranged but if the check returned a civil suit under order37 can be filed for the recovery
Devajyoti Barman
(Expert) 26 March 2011
Yes it does mean dishonouring of cheque.
Advocate. Arunagiri
(Expert) 26 March 2011
Only if the cheque returns for insufficient funds, the 138 case will come.
Jitendar Kumar gupta
(Expert) 27 March 2011
if the person received the notice from the issuer of the cheque before he presentation of the cheque then it is not covered U/S 138 Of NIAct.
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Guest
(Expert) 27 March 2011
Dear Rajashree,
Yoy have not mentioned whether you are asking this question as the receiver of the cheque or the issuer of cheque. The solution can not be proper is provided only on guess basis.
However, if the issuer of the cheque has duly notified the payee of the cheque, before presentation, on account of insufficient funds along with his intention to stop payment, with request not to deposit the cheque, dishonour of the cheque will not attract the provisions of the Sec. 138 of NI Act.
Arun Kumar Bhagat
(Expert) 27 March 2011
Stop Payment attracts 138 N.I.Act prosecution. See Apex Court Judgement-- Kuchil Kr. Nandi-Vs-Modi Cement Ltd.
Sri Vijayan.A
(Expert) 27 March 2011
Stop payment instruction amounts to bouncing of cheque.
As such, in general, it attracts the provision of 138.
However, if the instruction is justifiable, 138 may not apply to this.
So the applicability depends on the case.
indrajit mukhopadhyay
(Expert) 27 March 2011
if the account contained sufficient fund and subsequently the person issuing the cheque asks the bank to stop the payment for any valid and justified reason ,it's not coming within the ambit of sec.138 .2010 scc cri
Vinod Singh Tomar
(Expert) 28 March 2011
Its an offence. Other things will be seen during the trial of the case.
Sarvesh Kumar Sharma Advocate
(Expert) 27 March 2011
