Legal Question in Banking Law in India

Dear Sir / Madam

Greetings !

One of my client has paid me by cheque. On deposting the same I came to know the cheque issued by him was of a dormaint account. The cheque came back. Is there any provision to act against him. I learned that such cases do not come under NI ACT. Please help

Regards

Abhishek


Asked on 12/22/14, 12:10 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

23.12.2014

Dear Abhishek,

If the cheque bounces and is dishonoured for whatever reason including dormant A/c, you are entitled to file a recovery suit against the defaulter payer under Section 138 of the Negotiable Instruments Act. As a courtesy, if you feel that your client has by an oversight issued that cheque to you by mistake, you should tell the client to replace the cheque.

Regards,

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Answered on 12/22/14, 5:26 am


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