How to fight case under Section 138 of the Negotiable Instruments Act?


No law directly talks about a post-dated check being stopped for payment. It works as a security in case of non-payment. You are probably thinking that if the cheque is post-dated, then the issuer of the cheque can anytime call the bank and stop payment.

Under the law, you may be charged with issuance of a bad check only if you give the check knowing that you do not have sufficient funds in the bank to cover the payment of the check.Assuming that you had enough money in the bank to cover the check, stopping payment is not a crime.

if you write a check and the other party cashes it, you cannot have the check reversed.While you can get a stop payment placed on a check that has not been cashed yet, in some circumstances you might find out there is little your bank can do unless you can prove fraud or identity theft.

No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the Negotiable Instruments Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Hence, there is no question of any police investigation.

Reference: Negotiable Instruments Act



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