Legal Question in Insurance Law in India

negotiable instrument act
one of my client had issued a cheque for covring his vehicle. We have presented the cheque next day for clearance and it took for our bankers 12 days for clearance.
Meanwhile the vehicle met with an accident within 2 days of issu of the cheque. When we have verified the Bank Statement of my client he has no balance at the time of issue of the cheque but before the cheque got presented for clearance he had deposited money in his account. What is my liability of the damaged vehicle claim.

Asked on 9/01/07, 5:53 am

G. M. Gupta gmguptaandassociates

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Re: negotiable instrument act

if the cheque got cleared then it will be presumed that the payment was made on the day when the chque was given

so u are covered.

Answered on 9/01/07, 9:19 am

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Re: negotiable instrument act

Dealing between you and your client has nothing to do with the insurance of the vehicle and the liability arose after accident.

Answered on 9/01/07, 2:29 pm

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