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ap1 (k)     22 August 2014

Urgent

Amount of cheque in figures and words don't match . is the Cheque Valid ?Legal Consequences ? if invalid , a case under section 138 is maintainable ? 



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 2 Replies

Ashok, Advocate (Lawyer at Delhi)     23 August 2014

Such a cheque, if presented in bank, would be dishonoured since the amounts in words and figures do not match. Therefore, offence under Section 138 of the Negotiable Instruments Act may be made out if other requirements of that section (such as notice to accused, further non-payment, etc) are fulfilled.

R Trivedi (advocate.dma@gmail.com)     23 August 2014

It is the general practice to dishonor such cheques by Banks, but S.18 gives priority to amount in word.


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