Dear Members/Experts,
In the definition of NI act, it is stated that,
Dishonour of cheque for insufficiency, etc., of funds in theaccount. Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid.either because of the amount of money standing to the credit of .......etc
Please note the under lined and bold letters.
1.What is meant by an account maintained by him , does it meant an existing and a valid bank account?
2.If the account was closed several years before the presentation of cheque to the bank ( assume some one missues the cheque given by trust by putting recent date and presenting it to the bank)does it falls within the scope of the definition of an account maintained by him.Will it attracts NI act?
3.In some circumstances ,if there is no minimum balance for few years the banks will close the account without the knowledge of the account holder.
In such a case cheque dishonour will attracts NI act?
Just for knowledge sharing
Thanks in advance
Rajesh
