Legal Question in Banking Law in India

chq bounce under 138 section

myself issued chq to individual they presented to bank after 180 days. bankers admitted chques for clearing due not non avilability of fund they mentioned funds no avilable.actualy funds not avilable at the same time after 180 days how the bankers admitted the chq for clearing. whether any legal action we can take against bank for their action.


Asked on 6/26/08, 11:10 am

3 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: chq bounce under 138 section

A chq is valid for 6 months and not 180 days. There is a difference between both so before taking action please check.

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Answered on 7/14/08, 12:02 am
J. Radhakrishnan independent Practice

Re: chq bounce under 138 section

No action against the Bank by drawer. On the other hand, if the cheque has been given for collection by the payee/holder within six months of the date of cheque for collection and if the said bank did not present it for collection within six months, the payee/holder can take action against his Bank for damages for deficiency of service which can be equal to the amount of the cheque, in case on account of late presentation, the cheque has been returned unpaid.

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Answered on 6/26/08, 9:53 pm
G. M. Gupta gmguptaandassociates

Re: chq bounce under 138 section

yes you can take action against the bank for the negligence but u need to show the loss suffered by you.

if u have any bounce charges then bank will revert back on telling them and i dont think that action against the bank will benefit u much

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Answered on 6/27/08, 3:40 am


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