AI Overview...
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Cheque Return Reason - The court has identified that the reasons for cheque return vary, including prohibition of encashment, discrepancy in amount words and figures, insufficient funds, account closure, and payment stoppage by drawer. These reasons are generally documented through cheque return memos issued by banks. For instance, in Manmohan Choudhary VS Krishan Kumar - Jammu and Kashmir, the reason was prohibition of encashment, which did not prima facie attract Section 138 of the Negotiable Instruments Act. Similarly, in Om Pralasj Agarwal VS Khaja Krishna Prasad - Current Civil Cases and Om Pralasj Agarwal VS Khaja Krishna Prasad - Crimes, the return was due to account closure, supported by specific return memos. Other reasons include funds insufficient (Allahabad Bank VS Metal Pack Industries - Consumer, HSBC Limited, Hyderabad VS K. Shiva Kumar - Andhra Pradesh) and payment stopped by drawer (Paras Collin’s Distilleries Pvt. Ltd. , Rep. by its Managing Director VS State of A. P. - Telangana) various references.
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Bank's Role and Liability - Banks are responsible for returning dishonoured cheques with proper reasons documented via return memos. Wrongful or unjustified returns can lead to liability, including compensation for inconvenience, as seen in DEVAKANTA KAKATI VS STATE BANK OF INDIA - Consumer, where Rs. 2,500 was awarded due to wrongful return. Courts examine whether the reasons provided conform to banking practices and legal standards, notably under Section 138 of the Negotiable Instruments Act. For example, in D. S. Shridhar VS P. John - Telangana, the court scrutinized whether the bank's reasons for returning the cheque were appropriate.
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Legal and Procedural Aspects - The reasons for cheque return are crucial in determining the applicability of Section 138. If the return is wrongful or based on invalid reasons (e.g., account closed without proper notice), the drawer may have grounds for legal action. Proper documentation, such as return memos and notices, is essential for establishing the facts. The courts emphasize adherence to banking norms and the importance of accurate reason recording, as discussed in VIRENDRA CHANDRA MAJUMDAR VS KARVY COMPUTER SHARE - Chhattisgarh.
Conclusion:
The main reasons for cheque return include prohibition of encashment, discrepancy in amount, insufficient funds, account closure, and payment stoppage. The accuracy and legality of these reasons are vital, as wrongful returns can result in compensation and legal consequences. Proper documentation and adherence to banking procedures are essential to uphold the rights of the drawer and ensure compliance with relevant laws various references.
Search Results for "Cheque Return to other Reason"
2008 0 Supreme(J&K) 62 • India - Jammu and Kashmir
BASHIR AHMAD KIRMANI
Finding of the Court: The court found that the reason for the cheque return, i.e., the prohibition of its encashment ... Ratio Decidendi: The reason for the cheque return, i.e., the prohibition of its encashment by the petitioner, did not prima ... return. ... in that much return of the cheque does not prima-facie appear to be for any such reason as would attract Section 138 of the Act. ... So far as drawing of ....
• India - Consumer
R.C.JAIN, S.K.NAIK
... For the above stated reason, we are of the opinion that impugned ... bank was deficient in not honouring the cheque? ... despite the so called difference in figures and words of the amount of cheque. ... The said cheque was presented to the petitioner-bank, who in turn returned the check unpaid to the insurance company for the reason “words and figure differ”. ... For the above stated reason, we are of the opinion that impugned order passed by the State Commission cannot be sustain....
• India - Consumer
A.S.VIJAYAKAR, Y.KRISHAN, V.BALAKRISHNA ERADI, B.S.YADAV
of the wrongful return of the cheque. ... The court directed the bank to pay the complainants a sum of Rs. 2,500/- as compensation for the inconvenience caused to them by reason ... OF CHEQUE - COMPENSATION AWARDED. ... We direct that the Opposite Party-Bank shall pay to the Complainants a sum of Rs. 2,500/- as compensation for the inconvenience caused to them by reason of the wrongful return of the cheque. ... There is no order as to costs. ... Complaint allowed. ......
2022 0 Supreme(Telangana) 797 • India - Telangana
K. SURENDER
for prosecuting a drawer of the cheque. ... Ratio Decidendi: The court analyzed the reasons given by the banker for returning the cheque and referred ... Issues: The main issue was whether the reasons given by the banker for returning the cheque conformed to the ... As stated in the complaint, the question of returning the cheque for 'insufficient funds' does not arise. As seen from the cheque return memo, the reason of 'funds ins....
2007 0 Supreme(AP) 1150 • India - Andhra Pradesh
GOPALA KRISHNA TAMADA
On presentation, said cheque was dishonoured for reason "insufficient account balance vide cheque return memo and appellant Bank ... Negotiable Instruments Act, 1881 – Section 138 – Dishonour of Cheque - Reserve Bank of India and is governed ... Towards partial discharge of his liability against above credit card first respondent issued a cheque bearing for a sum of drawn ... On presentation, the said cheque was dishonoured for the reason "insufficie....
2022 0 Supreme(Telangana) 292 • India - Telangana
K. SURENDER
Said cheque was returned unpaid for reason of ‘payment stopped by drawer’- Aggrieved by return of cheque, a notice was issued – ... Distilleries Private Limited is filed - Subject cheque was issued in favour of M/s.I.K. ... Negotiable Instruments Act, 1881 - Section 138 and 142 - Loan Repayment - Cheque was Returned Unpaid - Case ... Aggrieved by the return of the cheque, a notice was issued. Since the payment covered by the cheque ....
• India - Dishonour Of Cheque
D.B.BHOSALE
The petitioner’s bank returned the cheques by issuing “cheque return memo” dated 19.4.2001 for the reason that “payment countermanded ... of—Said expression does not mean an information or cheque return memo sent by the drawee-bank to the bank where cheque presented ... “in 30 days of the receipt of information by the bank regarding return of cheque unpaid” in clause (b) of Section 138—Construing ... In turn the payee’s bank is obli....
• India - Current Civil Cases
B.SIVA SANKARA RAO
The cheque was bounced due to closure of the account and Ex.P4 is the said cheque return memo with reason sent by the bank. ... ... Ex.P4 cheque return memo was dated 21.11.1997 for the reason account ... Ex.P5 is the notice issued by the complainant after receiving Ex.P4 cheque return memo and Ex.P6 is the acknowledgement of the accused
2006 0 Supreme(Chh) 300 • India - Chhattisgarh
V.K.AGARWAL, VEENA MISRA, R.S.AWASTHI
It is' a matter of common knowledge and settled banking practice that in case a cheque is dishonoured for any reason the drawee Bank returns the cheque to the collecting Banker together with cheque return memo assigning reason as to why the cheque could not be honoured. ... After the collecting banker so receives the returned cheque together with the cheque return advice / memo he intimates the pe....
• India - Crimes
B.SIVA SANKARA RAO
The cheque was bounced due to closure of the account and Ex.P.4 is the said cheque return memo with reason sent by the bank. ... ... Ex.P.4 cheque return memo was dated 21.11.1997 for the reason account ... was dishonoured as account was closed by accused covered by Ex.P.4 cheque return memo, then, PW-1 got issued statutory notice Ex.P
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