Vinothbabu.S (Articled Assistant) (145 Points)
24 February 2009the drawer's cheque is sent for collection at another bank account of the drawer.
This is wrongly dishonoured by the paying banker.
here, the drawer and payee are same. so can the drawer or payee sue against bank u/s 138 of negotiable instrument act 1881, for the wrongful dishonour of cheque?
Rahul Gupta
(CA Final Student)
(1780 Points)
Replied 24 February 2009
Hello.
Sec 138 is for wongful dishnor of cheque in case of insufficient funds,etc.
In this case as far as i think, the paying bank will be liable only for the dishonour charges incurred to the drawer or payee. Also it is very important to note the correct reason for dishonour. So If the bank is guilty i think it will only be liable for the charges.
Correct me if i am wrong.
Regards
Rahul Gupta
O.D.SHARMA
(DGM-F & A)
(1734 Points)
Replied 24 February 2009
No,Here U/S138(Negotiable instrument act) is not appicable.U can only claim Bank charges.
Vinothbabu.S
(Articled Assistant)
(145 Points)
Replied 24 February 2009
Actually, According to me, suppose if there is other payee but not a drawer, bank will be punished for wrongful dishonour. because in this situation, the payee may think about drawer.
but if the drawer is the payee, he cannot think so.
So will bank be punished?
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