Ways to stop payment of Cheque

Check stop payment letter format – what is it, format

Currently, many banks offer this service through online portals. But in the case where the bank does not have this service online, you have to write a letter and send it to the bank.

While there is no express law to deal with check stop payments, courts have relied on Section 138 of the Negotiable Instruments Act for their decisions.

Request on Cheque, when lost

A deferred payment is usually requested if the check is lost or declared missing. But many times drawers have used it as a means of deception to escape their debt or debt.

An amendment to section 138 of the Negotiable Instruments Act in 1988 is also silent about stalled payments. The current paper reviews various decisions on how this aspect is covered by the courts and what tests have been conducted to conduct a payment order under section 138 of the Negotiable Instruments Act and interpreted clause (c) in that case Should be known

The contract between the customer and the bank is defined as a debtor-creditor relationship. The contract requires the bank to honor all valid and reasonable orders of the customer, as long as the money remains available in the customer’s account, pay the amount from his account with the bank. However, the customer’s order remains executable and can be saved until the bank makes the payment.

Solid reason required for proof

To stop payment of cheque or debarred cancelled cheque image basis of reasons and logic in the bank.

One reason the banker may refuse to pay the check is that the payment is withheld by the drawer. On receipt of timely stop payment order, the bank reserves the right to pay the item.
Thus, a customer has the right to give notice to his bankers to stop the payment of a check that he has issued. A written notice, usually signed by the drawer, is sufficient to prevent payment. A deferred payment is usually requested if the check is lost or declared missing.

In India, while there is no such provision related to the stop payment of checks. However there are various decisions regarding this aspect. Indian courts have included this aspect in section 138 of the Negotiable Instruments Act (hereinafter referred to as the Act), which deals with dishonor of checks.

History of cheque cancellation

The 1988 amendment attaches importance to the discussion of payment of withholding in view of the amendment to the Negotiable Instrument Act. Prior to this amendment, people issued checks knowing well that the check was not going to be honored at presentation, and they tried to create situations in which banks would “pay”, “draw reference” or “A / C.” “Will support the check. Such as “off”. These were some of the tricks used to avoid liability by penalty, which pertained to Section 138 of the Negotiable Instruments Act.