Clarification on grounds for cheque bounce

510 votes

Dear querist,
I am answering to the queries raised by you in two different parts because of the nature of queries. Firstly, insofar as your query on remarks made by the Bank on return memo are concerned, please note that the remark "refer to drawee/drawee bank" made by the Bank is no more acceptable as per RBI's new guidelines. Hence, if you presented the cheque in this quarter of the year and the same was returned with the said remark then you have all reason to make a complaint with RBI. You also have the remedy to file a case under Section 138, N.I Act (cheque bounce) because once you furnished a post dated cheque at time of opening the FD, it was obligatory upon the Bank to credit the amount to your account on maturity and honor the cheque when presented by you. I am assuming that you had opted for 'credit' and not 'auto renew' while filling the FD form because only if you had opted for auto renew, the Bank could have returned the cheque for insufficiency. If you had opted for 'credit' they should have honored your cheque. So, you may go ahead with the cheque bounce case.
The second part of your query on whether winding up can be filed by your company if sum is greater than Rs.1 lakh, relates to a different proceeding altogether and cannot be clubbed with the cheque bounce case. You can file for winding up, if proof of company's liquidation exits, before the SEBI. Even, the NCLT of concerned jurisdiction (Company's HO) would also have such power.

Advocate Prity Kumari LawRato

747 votes

Winding up petition is dealt in accordance with the provisions of sections 7 to 9 of Insolvency and Bankruptcy Code 2016 with effect from November 15, 2016. The petition can be made to NCLT. Now under the IBC, insolvency resolution petitions can be initiated against a financially solvent company.

Advocate Hemendra Kumar LawRato