cheque dishonoured due to account closed

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This topic contains 3 replies, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 3 months, 3 weeks ago.

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  • #1210

    Sir,

    Can I Lodge an FIR in Police under 420, if a cheque issued to me gets dishonoured due to “account close”.
    The account is said to be closed earlier to the date, the cheque was issued to me.
    what conditions would persuade the Police to do so.?

  • #1211

    For what purpose, the cheque was issued?

    Did you deliver some goods or services on the basis of the said cheque?     


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate, holds Ph.D. in Constitutional Law, and is author of 3 law books. He is the founder of this law portal. Read more about him by clicking here. List of his articles. List of his Forum Replies. Email: info@tilakmarg.com [Note: Free legal questions should be asked only at this Forum, and NOT at this email address.]

  • #1212

    Sir,
    It was a hand loan………….loan taken for household needs

  • #1224

    Section 420 IPC is reproduced below:

    420. Cheating and dishonestly inducing delivery of property.—Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.”

    It is clear from Section 420 IPC that it is committed when the act of cheating is used to induce the person to deliver some property etc. Such intention to dishonestly induce the person to deliver property etc should be since the beginning, i.e., since the time when the act was first committed.

    In your case, you say that hand loan was given. Now, suppose hand loan (which is property) was given at the time when the cheque was given to you, then perhaps Section 420 IPC may be attracted, since at that time the account itself was already closed. So, the intention, as mentioned above, would perhaps have been there to cheat.

    But, suppose the hand loan had already been given and the cheque was given subsequently, then at the time of giving the cheque there was no inducement for delivering any property etc (since hand loan is already given), and in such a case, it may become difficult to prove Section 420 IPC. However, even in this case, offence under Section 138 of Negotiable Instruments Act may be made out.

    What I have mentioned above is the general scenario. Ultimately, it depends on the detailed facts of an individual case. So, please consult some local lawyer by showing him all relevant documents / facts.

    Please also read my following articles, which are relevant to your question:

    http://tilakmarg.com/forum/topic/can-cheating-case-under-section-420-ipc-be-filed-in-cheque-bounce/

    http://tilakmarg.com/answers/breach-of-contract-will-not-be-cheating-unless-deception-played-at-the-very-inception/     


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate, holds Ph.D. in Constitutional Law, and is author of 3 law books. He is the founder of this law portal. Read more about him by clicking here. List of his articles. List of his Forum Replies. Email: info@tilakmarg.com [Note: Free legal questions should be asked only at this Forum, and NOT at this email address.]

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