Account closed memo

generally when accounts are closed, bank asks for return of unused cheque leaves ? Was it done ??

Ideally on the date of issue at least the relationship between the drawer and the Bank should exist, that is the wording of S.138 (account being maintained), so S.138 is not applicable in this case.

At the worst a case under S.420 can be filed for issuing a dud cheque, it is equivalent to giving fake currency.. But under S.420 the entire onus of proving the guilt is on complainant so it is difficult for complainant.

Now the trial court if cognizance has been taken will do nothing, so you have to rush to HC under S.482 with a plea that the relationship between the drawer and the bank was not existing at the time of claimed issued date by complainant. So S.138 is not maintainable. The letter from the Bank stating about the account closure is the incontrovertible evidence, and hence HC can take the judicial notice of such evidence under S.482. You must do it, it will set a very good precedent.

A man has to be tremendously dishonest to issue the cheque willfully from a closed account, I am sure this is not the case.

Sir, In the similar case if the relationship does not exists between banker and issuer, what if cheque returned with memo "Insufficient Fund" inspite of closure of account. Issuer of cheque claims that bank account closed long back and question of "insufficient fund" memo does not arrise. if Bank overlooked closed account issue and sent "insufficient fund" memo what happens to NI138. Thanks.

There is a very dangerous thing circulating around, that S.138 is applicable irrespective of nature of dishonor. No doubt the Hon Apex Court has ruled in the similar lines, but it is not a blanket order ruling out bonafide defense in such lines.

1. If the account is closed, then where is the question of insufficient funds.

138. Dishonour of cheque for insufficiency, etc., of funds in the account. Where any cheque drawn by a person on an account maintained by him..........

So on the date of receipt as claimed by prosecution, the drawer and his Bank should have a working account relationship. Such cheque has no probate value, its a dud piece, and the drawer if indeed issued after closure of account then he can be prosecuted under cheating not under S.138.

Objection can be raised that people will open and take the cheque book and shut the account and misuse such cheques, in that case law has to be changed, that before an account is closed Bank must collect all the blank cheque leaves or must take an undertaking about whereabouts of non returned cheques. For the lacunae in law people should not suffer.

Sir, 

I was just going through my situation, i saw the following judgement. Pl you also see and pl share that is there any latest law after this?

Gujarat High Court

Urban Co-Op. Credit Society vs State Of Gujarat And Anr. on 21 March, 2003

Thanks

Sir, 

I was just going through my situation, i saw the following judgement. Pl you also see and pl share that is there any latest law after this?

Gujarat High Court

Urban Co-Op. Credit Society vs State Of Gujarat And Anr. on 21 March, 2003

Thanks

Sir, 

I was just going through my situation, i saw the following judgement. Pl you also see and pl share that is there any latest law after this?

Gujarat High Court

Urban Co-Op. Credit Society vs State Of Gujarat And Anr. on 21 March, 2003

Thanks

This fits perfectly for you.

now there are two views.

1. That complainant is  lying when he referred the date of receipt of cheque as  22.01.14.

2. Or accused has cheated by issuing a dud cheque.

No S.138 for either.

basically your stand should be exactly as stated in previous post by me and as per Guj High court ruling put forth by you.

Sir, Infact in our case, per accused the account is closed but I have received a bank memo as "Insufficient Fund"

1. If the account is closed, then where is the question of insufficient funds.

Is it possible that bank manager overlooked and issued "Insufficient Fund" memo twice (twice cheque presented) instead of Account Closed. If Bank Manager submits his "Overlook" statement and withdraws "Insufficient Fund" memo in the bank, how to proceed with NI138. Now we are in Complainant Cross stage. Thx.