Legal Question in Banking Law in India

Re: Sec 138

no, the presumption seems to be incorrect. Instead, it is presumed that the "drawer is not known to the Bank". this may possibly happen when the drawer has used a check book of some one else instead of using his own check book.

in any case, you should issue a notice of demand under the negotiable instruments act demanding the money from the drawer. in case of non-payment, you will be entitled to start his prosecution under section 138 before trial court.

Re: Sec 138

It is better not to presume in such delicate cases, rather ask the Bank for further clarification before taking any steps. After you get more details write again, I will give more specific reply.

Re: Sec 138

Please approach the drawee Bank and ascertain the exact reason for such noting made by the Bank.No point in rushing to any conclusion in such cases involving the money

Re: Sec 138

Presumption without valid information is of no use. Ask your Bank to get the correct reason for return of the cheque. In any case, you issue demand notice to the drawer and proceed after seeing the result.

Re: Sec 138

Contact the bank for meaning of reason and don't presume anything