How to cancel issue dd after 3 months ?

If Demand Draft gets expired

In India, a demand draft is valid for a period of 3 months from the date of issue. If it is not presented within three months the Demand draft will not be valid but money will not be automatically refunded. Then the purchaser of the draft should approach the branch concerned bank which issued the draft and submit an application for revalidation of the draft. Please note, the payee (the person named in the draft) cannot approach the bank for revalidation of the draft, or for that matter, any other person.

The draft will be revalidated by the bank branch after verifying their original records, and would extend validity period by another three months from the date of revalidation.  A draft which has been revalidated once, cannot be further revalidated, which means that you have to present the draft to the bank within the revalidated period.

or else go for bond and submit it.

Physical possession of the instrument is material

You can surrender the original demand draft if you are having the instrument still with you.

If you wanted to encash it you may have to mislead the bank.

In case if you wanted to obtain duplicate, for further encashment, then also the payee should confirm.

The moment you have purchased the draft,  after taking physical possession of the draft, your relationship with banker ceases to exist, and the Bank is liable to true payee who must be having that instrument.

According to me you can not claim the amount without surrendering physical instrument.  As you do not have physical possession you can not claim it.   Even if the payee demands for payment, he has to get DD revalidated, and once again it has to be sent to you, as Banker revalidates the same as per your request only.

Demand Draft (DD)is the property of the Payee ie. the name whose name is appearing on the face of the DD.  If the DD in original is brought by the purchaser alongwith the counterfoil issued to him at the time of purchase of DD, Bank shall cancel the DD and pay the amount to the Purchaser.

Physical possession of DD is important.   In case of lost in transit, confirmation from the payee that it was not received is mandatory. The counterfoil  of challan will be insisted in case of cash purchases, where some individual purchases for a company, and for those who do not maintain account, to get confirmation that the demand draft was infact purchased by claimant.  Production of counter foil is not mandatory and insisted only for identity purposes.

Another angle in the case is as follows:

1. How the company was closed? Was it under liquidation? If so the fate of the DD should be decided by the Liuqidator. Without knowing the reason why the Company has been closed, Bank may not be able to take a decision to cancel the DD and pay the amount to the Purchaser, in the absence of original DD brought back to them.