Legal Question in Banking Law in India

Demand draft issue,

Dear Sir,

I have sent a DD but the receiver said that the DD was bounced but when i contact my bank it said the payment is clear.

After this, the receiver side is still saying that the payment is not clear and my account is closed.

What should i do?


Asked on 9/19/13, 11:02 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.09.2013

Dear Sir / Madam,

A Demand Draft never bounces, but is returned back to the Payee by his / her bank, if it is not encashed within the validity period. You should ask the receiver to substantiate his / her claim with proof of the advice from his / her bank with reasons for the DD not having been cleared, and return back of the original DD along with it to you, to confirm that the payment has not been made. You should submit this evidence of non-payment to your bank and get a fresh DD issued in the name of the Payee.

Regards,

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Answered on 9/19/13, 11:19 pm
J. Radhakrishnan independent Practice

I agree with Prashant Chavan

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Answered on 9/20/13, 4:32 am


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