Some fees are quite high, and it may not be worth stopping payment on a cheque for a small amount. If this happens, there are also remedies for the account holder listed in the section. Banks will generally get rid of stop payments from the system after 6 months. If the whole cheque book is lost, the consumer should immediately inform the police and close the account. The great thing about cheques is we can stop the payment of the cheques which we have issued.
Request Letter to Stop Cheque Payment. In this article, I'll give you a few tips that your should consider with respect to your cover letter format. The authority shows that even when the cheque is dishonoured by reason of stop-payment instructions by virtue of Section 139 the court has to presume that the cheque was received by the holder for the discharge, in whole or in part, of any debt or liability. In this article of mine, I will be showing you a sample letter format which you can follow to stop cheque payment. Warm Regards, Name… Job Designation… Contact no. Kindly stop the payment on this check. We issued this post dated cheque two months back to Ericsson Pvt Ltd as payment of Food Packaging plant.
Once a cheque is issued by a drawer, a presumption under Section 139 must follow and merely because the drawer issued notice to the drawee or to the bank for stoppage of payment it will not preclude an action under Section 138 of the Act by the drawee or the holder of the cheque in due course. You should not just throw it in the trash. Thus a court cannot quash a complaint on this ground. Thanking you in anticipation of your best co-operation. Also see: Other articles on. It generally happens at the end of the following business day in most cases. In the case of Rangappa v.
Subject: Stop Payment of Cheque No. If stoppage of payment of a post-dated cheque is permitted to take the case out of the purview of Section 138 of the Act, it will amount to allowing the party to take advantage of his own wrong. I have issued a new cheque to the payee. In this Article: There any many reasons why you might want to stop payment on a check, ranging from theft or fraud to a simple lack of funds. In the case of Goaplast P Ltd. There is usually a charge for the service, regardless of whether payment is actually stopped or not.
Sample letter to bank manager for stop payment of cheque issued to vendor, client or customers, company, business partner and likewise. You can follow this format with all the banks that are operating in India. This includes all names on a joint or company account. It also cannot go through if there was not enough time to process the request. It is desirable that the court should ban in favour of an interpretation which serves the object of the statute. The penal provisions contained in Sections 138 to 142 of the Act are intended to ensure that obligations undertaken by issuing cheques as a mode of payment are honoured.
A post-dated cheque will lose its credibility and acceptability if its payment can be stopped routinely. Deal with an unstopped payment. Always ask your bank for a courtesy waiver of the stop-payment fee. The purpose of a post-dated cheque is to provide some accommodation to the drawer of the cheque. This allows time for the cancellation to be processed. Stop Cheque Payment in Canara Bank: Cheques are a great way to pay your clients or make payments which are big in amount. It is held that the presumption under Section 139 is attracted in such a case also.
Therefore, while considering the question of applicability of Section 138 of the Act to a situation presented by the facts of the present case, it is necessary to keep the objects of the legislation in mind. Get Sample Letter in Word Format. You should also ask how long it stays in effect. Now we have to assume that the cheque is lost in postal transit. Since your bank already has most of your information attached to your account, it is much easier than trying to do it in person. I will be thankful for your cooperation.
There will not be a person there to figure out the missing information. The faith, which the legislature has desired that such instruments should inspire in commercial transactions would be completely lost if parties are as a matter of routine allowed to interdict payment by issuing instruction to banks to stop payment of cheques. But here you need to note that you have sufficient amount of balance or money in your bank account. Now that the check is cancelled, you need find other way to arrange payment. So while entering the cheque number s check it twice to avoid mistakes.