Legal Question in Criminal Law in India

Cheque Dishonour u/s 138

Dear Sir/Madam,

A cheque is dishonoured & Memo by bank has given 3 reasons:

1. Insufficient funds

2. Payment stopped by Drawer

3. Cheque out of date ( Cheque was presented to bank within validity period but bank delayed the clearing by 50 days & issued the memo after the cheque turned stale)

Is compliant u/s 138 maintainable & valid ? Can you please refer some case law on this?

Regards

--name removed--


Asked on 8/27/08, 6:20 am

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

Re: Cheque Dishonour u/s 138

Yes case is maintainable.

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Answered on 8/28/08, 7:28 am
Sachin Sangare Private Practise

Re: Cheque Dishonour u/s 138

Yes, the case is maintainable, as per sec 138(a) cheque has to be presented to the bank within its validity period. There is no specification about the Drawers bank or the Payees bank. But simple interpretation means the bank of the payee.

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Answered on 8/27/08, 6:36 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Cheque Dishonour u/s 138

The complaint u/s 138 is maintainable.

You are also entitled to seek damages from the bank for negligence & "deficiency of service". You may consider filing a case before Consumer Forum/Commission against the Bank.

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Answered on 8/27/08, 10:13 am
Shrichand Nahar S.V.Nahar, Advocate

Re: Cheque Dishonour u/s 138

Fate of proceedings u/s.138 appear doubtful.

Examine facts and circumstances of the matter careful to find out whether any other offence is made out against the drawer and bank.

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Answered on 8/28/08, 12:36 am


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