Legal Question in Banking Law in India

Is there any difference between Stop Payment and Insufficient Funds in case of dishonor of a cheque ! for example A given a blank cheque to B when they were friends and working on a project together. After a broken friendship B present that cheque into bank putting big amount on it but just one day earlier A, suggested by an advocate friends, approached bank for a stopped payment and even to police reporting that chques as LOST. Now A gets a lawyer notice to pay that amount claiming that it was lended to A from B for A's business purpose. Does NIT 138 applies here ? Is A is accused ? Is there any law that can stop and punish B for such a fraud ?

Asked on 4/28/13, 12:43 am

Jayesh Desai Jayesh Desai

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