Cheque - Payment stopped by Drawer

Dear Client,

Yes, you can still file a cheque bounce case even if the cheque is dishonored with the reason "Payment stopped by Drawer." According to Section 138 of the Negotiable Instruments Act, 1881, stopping payment on a cheque without a valid reason can still be considered an offense under cheque bounce provisions.

Regards

Dear Client,
When a person issues a post-dated cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque is free to present the same for encashment on any date and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. A post-dated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the cheque, the cheque's drawer will be held accused under Sec. 138 of N I Act, 1938. Even, a stop payment instruction to the Bank from the drawer of the cheque which was issued towards the discharge of any contractual obligation would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque would face legal consequences under Section 138 of the N I Act, 1938. A legal notice has to be served on the drawer of the cheque within 30 days of the instance of dishonor. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. If required, you may hire the service of an Advocate for necessary guidance and steps to navigate the issue in the right way.