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| Home > Employment, Criminal and Labour > Dishonour of Cheque |
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| Effect of Stop Payment |
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- Stop payment instructions cannot obviate the offence.
- Even if stop payment instructions are given and notice of the same is given to the payee or holder in due course liability cannot be avoided.
- The position will not be different even if the drawer had instructed the bank to stop payment prior to the presentation of the cheque for encashment.
- Once the cheque is issued there is a presumption, that the holder received the cheque for the discharge, of any debt or liability and merely because the drawer issues a notice to the drawee or to the bank for stoppage of the payment it will not preclude an action under the Act.
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