Stop Payment of PDC

 Stop payment would amount to dishonour of cheque and an offence as contemplated under section 138 of the NI Act.

Equally any written communication from the drawer not to present the cheque would not save him from the offence. You can very well deposit the cheque. 

In M/s. Electronics Trade & Technology Development Corpn. Ltd., Secunderabad v. M/s. Indian Technologists & Engineers (Electronics) Pvt. Ltd., the Supreme Court held that:-

"when a cheque is drawn by a person on an account maintained by him with the banker for payment of any amount of money to another person out of the amount for the discharge of the debt in whole or in part or other liability is returned by the bank with the endorsement like (1) in this case, "I refer to the drawer" (2) "instructions for stoppage of payment" and (3) "stamp exceeds arrangement", it amounts to dishonour within the meaning of Section 138 of the Act."

thank you sir for your kind info. will you pls give SC ruling reference so that i could get copy of the entire order???

 

 

Iam sorry, I dont have the citation except the year ie. 1990-1991.

you can take help of another judgement :-

Rakesh Nemkumar Porwal vs. Narayan Dhondu Joglekar (1993 1 CR 268) = (1993 CRI L J 680) = (1993 MH L J 630) = (72 CC 822) DB BOM wherein it was held that "Any reason for dishonour is an offence".

 

Stop payment does not prevent the issuer of the cheque from any liability.You can procecute him under the negotiable instrument Act. and recover the double amount with interest together with a penal provision of 2 year imprisionment. Also you could procucute him under IPC for the cheating which provides for rigrious imprisonment upto 7 years.

I assure you he will deposit all the amount on the very day he receive any summon from the court.

Hi

 Reply to his written notice through lawyer and ask him to make payment against cheques given by him within limitation from the date of cheque returned unpaid.

My customer had issued Delhi bank cheque - this was deposited in our bank in Delhi (as we have all India account with Kotak Mahindra bank)- now question arises as to where do we file the complaint- in Mumbai where we have our sales office or in Delhi (since the party is in Delhi & also cheque was deposited & returned by Delhi bank??? Recent Bombay HC ruling (as reported in Times of India issue of 23/02/09) says that case has to be filed in the city where cheque was deposited.....

 

thank you for your opinion that i can prosecute him for cheating...pls let me know on what grounds can i file case against him for "cheating"- that is section 420 of cr.p.c.....also could you pls cite any case where the accused has been convicted under similar situation????