Cheque bounce
3 months ago
A person gave me cheque of andhra bank 3 months ago, when i presented it , i came to know that andhra bank is merged. What are options now? Can i file 138 ni case
A.Dear Client,
Cheques may bounce due to various reasons such as insufficient funds, signature mismatch, incorrect cheque date, disparities between numerical and written amounts, damaged or torn cheques, and instances of overwriting. Additionally, a cheque becomes stale three months after its issuance, rendering it invalid for encashment. It's important to note that a bank merger is not grounds for dishonoring a cheque and does not warrant action under Sec.138 of the Negotiable Instruments Act. In the case of a dishonored cheque from Andhra Bank after a merger, the drawee/cheque holder should return the cheque to the drawer and obtain a cheque of equivalent value from the newly merged bank. If the replacement cheque is also dishonored due to insufficient funds or stop payment, serving a legal notice to the drawer becomes necessary. This notice requires the drawer to make the cheque payment within 15 days; failure to comply may lead to filing a case under Sec.138 of the Negotiable Instruments Act in court against the cheque drawer.
Thankyou
Cheques may bounce due to various reasons such as insufficient funds, signature mismatch, incorrect cheque date, disparities between numerical and written amounts, damaged or torn cheques, and instances of overwriting. Additionally, a cheque becomes stale three months after its issuance, rendering it invalid for encashment. It's important to note that a bank merger is not grounds for dishonoring a cheque and does not warrant action under Sec.138 of the Negotiable Instruments Act. In the case of a dishonored cheque from Andhra Bank after a merger, the drawee/cheque holder should return the cheque to the drawer and obtain a cheque of equivalent value from the newly merged bank. If the replacement cheque is also dishonored due to insufficient funds or stop payment, serving a legal notice to the drawer becomes necessary. This notice requires the drawer to make the cheque payment within 15 days; failure to comply may lead to filing a case under Sec.138 of the Negotiable Instruments Act in court against the cheque drawer.
Thankyou
Helpful
Helpful
Share
A.Dear Client,
A cheque may bounce for the following reasons -Insufficient Funds: Signature Mismatch: Cheque Date: Difference In Number And Words: Damaged Or Torn Cheque: Or overwriting:. Apart from these, Stale Cheque: i.e, Three months past the date of issuance, a cheque is past its validity and is called a stale cheque which is not enchased. So, a merger of Banks is not considered as a ground of dishonor of cheque and does not attract an action under Sec.138 of the N I Act. Drawee/cheque holder is required to return the cheque of Andhra Bank to the Drawer and get the cheque of the same value drawn on the concerned Bank where the Andhra Bank merged. If the said cheque is dishonored on presentation on the ground of insufficient funds or on stop payment instruction, then a legal notice is required to be served upon the drawer of the cheque asking payment of cheque amount within 15 days failing which a case under Sec.138 of the N I Act, shall be filed in the Court against the Drawer of the Cheque.
A cheque may bounce for the following reasons -Insufficient Funds: Signature Mismatch: Cheque Date: Difference In Number And Words: Damaged Or Torn Cheque: Or overwriting:. Apart from these, Stale Cheque: i.e, Three months past the date of issuance, a cheque is past its validity and is called a stale cheque which is not enchased. So, a merger of Banks is not considered as a ground of dishonor of cheque and does not attract an action under Sec.138 of the N I Act. Drawee/cheque holder is required to return the cheque of Andhra Bank to the Drawer and get the cheque of the same value drawn on the concerned Bank where the Andhra Bank merged. If the said cheque is dishonored on presentation on the ground of insufficient funds or on stop payment instruction, then a legal notice is required to be served upon the drawer of the cheque asking payment of cheque amount within 15 days failing which a case under Sec.138 of the N I Act, shall be filed in the Court against the Drawer of the Cheque.
Helpful
Helpful
Share
Read Related Answers
Fake cheque bounce case
Dear Client,
To address a false complaint or false criminal proceedings filed against you, you can seek its quashing through a petition before the High Court under Section 482 of the Code of Criminal...
FD as a security for bail
Dear Client,
Generally, FD can considered as a legitimate form of security for bail in cheque bounce case. However, in most of the cases it involves specific procedural requisites, wherein, the bank c...
Cheque bounce due to stop payment.
Dear Sir,
You just file cheque bounce case against him and then let him contest the case and prove his defence which is very hard.
Cheque bounce
Dear Client,
According to Section 138 of Negotiable Instruments Act, cheque bounce is a punishable offence with an imprisonment of up to two years and fine up to twice the amount of cheque. So, the ag...
Cheque bounce case
Dear Client,
a cheque bounce case under sec 138 of the NI act must be filed within 1 month of the act and legal notice must be sent within 45 days of the offence, but if the arrest is made 5 years af...
Read Blogs on Cheque Bounce
Cheque Bounce Lawyers
Find Lawyers by Location
