Bank related query!

others 440 views 4 replies

Rakesh Rao

CA Final Student

408 Points Joined September 2009

A proprietor gave a post dated account payee cheque (dtd 5th April) on 23rd March to a supplier. The supplier presented the cheque before the cheque date in his bank. It came for presentation to the proprietor's bank on 28th March but was returned due to insuffient balance in the proprietor's account, due to which the "Cheque Return Charges" was debited to the proprietor's account. However there was sufficient balance on 5th April.

Now I want to know that was the bank right in debiting the Cheque return charges for no fault of the proprietor? Who is responsible for this negligence... Is it Supplier's banker or proprietor's banker? Or is it wrong to give post dated cheque itself??

Replies (4)

Guest

Issuing Post dated cheque is not a fault.

The chq was dated 5th April,but it was presented for payment on 28th March.

In this case the cheque should be returned with reason "Post Dated Instrument",but not with reason of "insufficent funds"

Debiteing the account for cheque retun charges vary form bank to bank.

Plase check the return memo for what reason cheque was returned.

Take the issue to bank manager ,If debited wrongly ther will credit back the charges.

The supplier can once again present the cheque for payment on or after 5Th April.

In this case it seems to be the negligence of propriter bank.

It is advisable to present the cheque through clearing house.

Guest

Its Proprietor's bank's fault, as they cannot dishonour the cheque before the date mentioned on cheque.,

at first, Supplier's Bank cannot send the post dated cheque for clearance.., and even if proprietor's bank received the cheque on 28th march, they shd have tried to retain it upto 5th April,

and further, in this case, bank has no right to debit chq return charges.., account holder can ask for re crediting the charges to his account.

for more details, you can check the following link.., hope it may help you..

/articles/critical-study-of-dishonour-of-cheques-under-negotiable-instruments-act-1881-10283.asp

Guest

Originally posted by : Harini
	they shd have tried to retain it upto 5th April

Retention of chq is not possible in all cases.

If presented before chq date ,it should be returned reason :"Cheque is Post dated"

Guest

Originally posted by : Rajesh
	Originally posted by : Harini they shd have tried to retain it upto 5th April Retention of chq is not possible in all cases. If presented before chq date ,it should be returned reason :"Cheque is Post dated"