Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Cheque issued and not presented

Save Share

This query is : Resolved

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Querist)
Follow

16 December 2019 Very few suppliers cheque issued and not presented before the expiry of validity. We understand from the suppliers that they have not received the cheque and it was lost in transit. Normally , we have the practice of getting Indemnity bond from the supplier with the company seal and signature and issue a fresh cheque.

But some suppliers arguing that cheque was not presented before expiry and fresh cheque to be issued without asking indemnity bond .

We request expert opinion whether issue of cheque without indemnity bond for expired cheque & not received by the company is legally correct and also accounting point of view also

GN Patankar

GN Patankar (Expert)
Follow

01 March 2020 Suggest please take letter from vendors as they have not received cheque , give letter to the Bank for stop payment of such instrument and issue fresh cheque.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!