Legal Question in Banking Law in India
Hi, I got a cheque for 1300K from my creditor. I deposited this to my account and my bank given me the credit to my account. next day I have issued a cheque to my debtor for 700K and he also got the credit. on 3rd day, my bank came back to me saying that the cheque I got from my credtor got bounced and asking me to refund the 700K to bank which I gave to my debtor. else bank is going to sue me. can bank do this? how can a bank give me credit for such a big amount with out getting confirmation and now after`3 days asking to refund back the amount. my bank say that if I dont refund this 700K they are going to seize my locker which is in thius bank. is this justified?
1 Answer from Attorneys
your bank having given instant credit has discounted the the cheque . That does not mean the BANK cannot reversse the credit when the cheque deposited by you bounced later. The Bank may not seize your locker. It is only a threat to you to pay the debit balance caused on account of the bouncing of the cheque. Better credit sufficient funds to the Bank account to come out of the situation
Related Questions & Answers
-
Can one party take a loan against a deposit with a mandate of either or survivor Asked 3/23/11, 4:43 am in India Banking Law
-
What should be the date format on the Cheque as per Negotiable instrument act Asked 3/23/11, 4:06 am in India Banking Law
-
Received a notice u/s13(2)., we approached bank with published notice & ammount,... Asked 3/22/11, 7:38 am in India Banking Law
-
What Is meant by UCC International Regulations?Where can i find some scripts to read... Asked 3/22/11, 2:10 am in India Banking Law
-
We have a un secure loan in Kotak Mahindra bank. from past two years we are payin... Asked 3/22/11, 1:20 am in India Banking Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
