Please read Impact of closing of account on cheque bouncing case – whether Section 138 attracted, wherein I have explained that after issuing a cheque, if the account is closed by the drawer and due to this reason, the cheque is dishonoured, an offence of cheque bouncing under Section 138 of Negotiable Instruments Act, 1881, may still be attracted, provided other ingredients of this offence are satisfied.
Now, if the cheque is issued on a closed account, i.e., an account which is already closed, then also the offence under Section 138 of the Negotiable Instruments Act will be made on it getting dishonoured. This is because the amount of money standing to the credit of “that account” was “nil” at the relevant time (due to it being closed). Closure of the account means the entire amount in the account is withdrawn. It means that there was no amount in the credit of “that account” on the relevant date when the cheque was presented for honouring the same. Thus, there was insufficient or no fund to honour the cheque in “that account”.
In view of this, if a cheque is issued on a closed account, the offence of cheque bounce is made out. In fact, in such a situation, even an offence of cheating under Section 420 IPC may also be made out in certain circumstances.
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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