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Dishonor of Cheque

Effect of stop payment

Stop payment instructions cannot obviate the offence.

Even if stop payment instructions are given and notice of the same is given to the payee or holder in due course liability cannot be avoided.

The position will not be different even if the drawer had instructed the bank to stop payment prior to the presentation of the cheque for encashment.

Once the cheque is issued there is a presumption, that the holder received the cheque for the discharge, of any debt or liability and merely because the drawer issues a notice to the drawee or to the bank for stoppage of the payment it will not preclude an action under the Act.

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