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Dishonor of Cheque


Presentation of cheque any number of times

There is no embargo upon the payee to successively present a dishonored cheque during the period of its validity.

There is no restriction regarding the no of times a cheque can be presented and that every subsequent representation and dishonor gives rise to fresh cause of action for filing complaint.

In the course of business transactions it is not uncommon for a cheque being returned due to insufficient funds or similar such reason and being presented again by the payee after sometime, on his own volition or at the request of the drawer, in expectation that it would be encashed.

For dishonor of one cheque there can be only one offence and such offence is committed by the drawer immediately on his failure to make the payment within 15 days of the receipt of the notice served.

On each presentation of the cheque and its dishonor, a fresh right and not cause of action accrues. Therefore the payee without taking pre-emptory action in exercise of his right may, go on presenting the cheque so as to enable him to exercise such right at any point of time during the validity of the cheque.

Cause of action would arise only on failure to pay after notice.

Once a notice for payment is given a fresh cause of action will not arise if the cheque is presented again and it is dishonored.



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