Please read my following article, which answers your question: Consequences of Stop Payment on cheque dishonour when there is a dispute between parties.
As mentioned in the above article, the Supreme Court has held that “stop payment” instructions given by the drawer of the cheque do not really alter the character of a cheque dishonour case, provided all other ingredients of the offence defined under Section 138 of the Negotiable Instruments Act, 1881, are satisfied.
Once a cheque has been issued to you, and if it is dishonoured, then a presumption arises in your favour that it was issued for an existing debt or liability. A subsequent dispute about the amount to be paid may not help your opposite party much in so far as the cheque dishonour case is concerned, though he may have other civil remedies.
Therefore, if the cheque has bounced, then you can issue the legal notice and proceed further with the case under Section 138 of the Negotiable Instruments Act.
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.
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