Tag: 138 cases

Cabinet Approves Ordinance to amend Negotiable Instruments Act

June 14, 2015 Lex-Warrier No Comments

According to the Official release, “the cabinet has given its approval for the proposal to promulgate the Negotiable Instruments (Amendment) Ordinance, 2015”. Thereby, Cabinet approved an ordinance to amend the Negotiable Instruments Act, which provides for filing of cheque bounce cases in place where the cheque was issued, a move that will benefit many people….

Legal Update

The validity period of cheques/ DDs reduced from 6 months to 3 months.

November 7, 2011 Lex-Warrier No Comments

The validity period of cheques/ DDs reduced from 6 months to 3 months. This will be effective 1.4.2012. For further information Copy of the RBI Circulation has been given below
RBI/2011-12/251
DBOD.AML BC.No.47/14.01.001/2011-12

November 4, 2011

The Chairmen/Chief Executive Officers
All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks

Dear Sir,

Payment of Cheques/Drafts/Pay Orders/Banker’s Cheques

In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument.

Legal Update

No case made out if cheque issued for Security Deposit – Bombay HC

September 17, 2011 Lex-Warrier No Comments

Brief Facts:
As per the said contract, Contractors deposited the sum of Rs. 10 lacs by undated cheque no.027840 drawn against South Indian Bank Ltd., Palarivattom Branch, Cochin branch with the respondent no.1 as refundable security deposit for the due performance of the agreement. The said undated cheque was in custody of the respondent 2 no.1 and it appears that the respondent no.1 filled in the date on undated cheque as “4.6.2008″. The cheque was presented to the drawee bank through the banker of the respondent no.1. Cheque was returned unpaid on the ground that the drawer had stopped the payment. Therefore, notice was issued by the respondent to the contractor as well as its managing partner for the payment of the cheque amount. In spite of notice, payment was not made.

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