Does “13-Drawer’s signature required” comes under cheque bounce?

[Sadiq Hussain]

According to the law declared by the Hon’ble Apex Court in; Laxmi Dyechem v. State of Gujarat, (2012) 13 SCC 375 : 2013 Cri LJ 3288, “12-drawers signature differs” comes under cheque bounce.

In my case, a cheque issued by the Government Treasury Department on the RBI does not bear the signature of the issuing authority. The Account Payee Cheque was drawn in my favour on 03/02/2016 and an intimation was issued to me immediately thereafter, stating that the said Cheque is remitted to my Savings Bank Account.

On 08/03/2016 I had brought to the notice of the Drawing Officer concerned the fact that although you have intimated me that Cheque bearing No: xyz is remitted to my SB A/c No: abc, the same is not actually and practically credited to the said A/c.

However, on 03/05/2016, i.e. the date following the date on which the currency of Cheque was expired, I was informed by the Bank’s NETWORK’s SMS that the Cheque stood bounced. As such, I have issued the Notice on 04/05/2016, by means of email, informing the concerned authority that if the amount is not paid to me within three days from the receipt of the notice I will be forced to take recourse to Criminal Law.

I may please be clarified whether the law declared by the Hon’ble Apex Court applies to my case also or otherwise.

[Dr. Ashok Dhamija]

It is not clear from your question as to whether the cheque did not bear the signature of any person at all (including that of the issuing authority) or it contained the signature of some one other than the issuing authority.

Likewise, though you have mentioned that the bank had informed you that the cheque had bounced, but the reason is not mentioned in your question; however, from the heading of your question, it appears that the reason given may perhaps have been “13-Drawer’s signature required”. Please confirm it.

In either case, it is advisable for you to give a 15 days’ time period to the concerned authority to make the amount, as required under clause (c) of the Proviso to Section 138 of the Negotiable Instruments Act, and a 3 days’ notice given by you may not be sufficient if you are required to file the case at a later stage. Moreover, you have sent the notice by email; it may not be sufficient. You should send the notice by registered post so that you get proof of delivery of the notice in court at a later stage, if needed.

Please read the provisions of Section 138 carefully or take help of some local lawyer so that you take the correct legal action as per the legal provisions.

Since the cheque issuing authority is a Government authority, I feel that the “missing signature” on the cheque may be by mistake and also that on a proper notice being sent the authority would perhaps make the payment this time.

In the worst scenario, if the payment is not made even after notice and if you act according to the provisions of Section 138, I am of the considered opinion that an offence may be made out under that section in the facts mentioned by you, provided of course that other conditions in Section 138 are satisfied, i.e., of sending the notice and the non-payment by the issuing authority.
     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

[Sadiq Hussain]

Dr. Dharmija ji;

I am much grateful for being pleased to render me the expert advise.

Sir, I confirm that the Cheque does not bear the signature, of any authority, at all. The same was drawn on the RBI. The RBI has returned the Cheque to the Drawer himself for want of signature on 02/05/2016.

I am fortunate enough that the advise is afforded to me by a most competent expert, since I am enlighten about the minimum period of Notice.

As regards the email notice, the concerned authority has responded to it saying that a fresh cheque will be obtained from the concerned Treasury Office and sent to me at the earliest.

I may further be enlighten as to the course of action to be adopted by me, since the concerned authorities had acted in this fashion in expectation of GRATIFICATION from me and I have been bringing this aspect to more than one authority from time to time.

Sir, be kind enough to guide me in this regard also

[Dr. Ashok Dhamija]

As mentioned in my previous reply, please send a proper notice for 15 days through Registered A.D. post, even if the authority has promised you. This is so because you have mentioned that the authority is expecting some gratification from you. So, in the absence of a gratification from you, if the authority does not make the payment within 15 days after receipt of notice, at least you would be able to initiate criminal action for cheque bounce case.

Secondly, if the authority is expecting gratification and has demanded any bribe from you, you should approach the Anti-Corruption Bureau / department in your state and get the concerned officer caught red-handed for demand / acceptance of bribe.     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

[Sadiq Hussain]

I am grateful to you sir. I will follow this advise.

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