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What does one mean by Refer To Drawer in Cheque Bounce scenarios
19-Sep-2023 (In Cheque Bounce Law)
I gave 120000 to a partnership firm, proof of transaction is just a receipt of letter on company letter head by Itz Managing Partner,Later when I asked got a cheque for 1000000/- n dishounered by bank with code 'REFER TO DRAWER'... WHETHER THIS COMES UNDER NI ACT or not? Is there any previous judgement?
Yes any cheque which is returned with an endorsement of refer to drawer it comes under NI Act. You can Fila a case against him and when such huge amount is involved his liability increases for payment and the transaction of letterhead is enough to prove.
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Adv. Akshay Gupta
Hyderabad | 200+ Answers
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What is the difference between refer to drawer and insufficient funds?
Referring to the drawer means you must refer to the person who issued the cheque if the cheque has not been honored. The cheque will bounce if the drawer's account has insufficient funds. 01-Jan-2022
For what reasons may a cheque be referred back to the drawer?
The words written on the cheque when it is dishonoured by the bank. This is usually because there are not enough funds in the account for the person to pay the check and the manager is not willing to let the account go overdrawn.
What does it mean by refer to drawer?
A bank may ask the payee to consult the drawer about a check payable by the bank. This is usually because the drawer does not have enough funds on his/her account. Payment will be suspended while the drawer consults the payee. Refer to the full definition of refer.
Dear,
REFER TO DRAWER" means that the cheque you have presented to your banker has not been honored and you need to refer the issue to drawer of the cheque. This happens when the drawer's bank account is short of funds and the cheque bounces due to insufficient funds. Yes "Insufficient funds" attracts provision of Section 138 of NI Act and you can file a cheque bounce case against the drawer of the cheque under Section 138 of NI Act after sending a demand notice the drawer for payment of the amount under cheque and giving him 15 days to respond.
REFER TO DRAWER" means that the cheque you have presented to your banker has not been honored and you need to refer the issue to drawer of the cheque. This happens when the drawer's bank account is short of funds and the cheque bounces due to insufficient funds. Yes "Insufficient funds" attracts provision of Section 138 of NI Act and you can file a cheque bounce case against the drawer of the cheque under Section 138 of NI Act after sending a demand notice the drawer for payment of the amount under cheque and giving him 15 days to respond.
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Adv. B. Srikiran
Hyderabad | 500+ Answers
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This suggestion only. pl. Contact you r nearset advocate . Undet NI ACT time is essential afer bounce d the cheque. You quatoin is you cheque has came undet NI ACT. You have to prove your cheque beyond all reasonable doubts.
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Adv. Mohammed Ghouse
Cuddapah | 100+ Answers
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