• How to encash DDs that is taken in the name of court

Dear sir.
My father was a bank employee and he kept surety for someone and that person was a defaulter so,my father had a salary cutting for 25000 through court.my father used to pay every month 5000k in the form of dd to court. After five months cutting should be stopped as per the order given by court but, bank manager said "no instruction is given by court to stop your cutting so, we will continue". They did like that until he retired. Chit company people told we have recovered surety amount so, court also given back the dds back to us after their amount is recovered those dd's are with us only. Can you please guide how to encash those dd's sir as per law?
Asked 7 years ago in Civil Law

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4 Answers

1)your father has to make application to court to return the excess surety amount deposited in court

2) enclose copy of court order that directed your father to pay Rs 25000

3) seek directions that chit company b e directed to return the excess DD amounts

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

If the court has directed for deduction for 5 months then bank can not deduct beyond the said period.

You may send the copy of the order to the higher authority bringing its attention to the said fact.

If the bank still continues the same you will have to file contempt petition or writ petition in high court.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

HI

You should apply for discharge of sureties under Section 134 in The Indian Contract Act, 1872 in the local court.

arraying your father as Petitioner and Chit Fund Company as Creditor.

Since your father has paid all his liabilities, the chit fund company will file the No Objection certificate in the court and based on the No Objection certificate, the court will issue a discharge order in favour of your father.

Based on the discharge order, you can cancel the Demand Draft and subsequently encashed

It is a simple straight forward case and you should be able to get the DD's cancelled and subsequently encashed within 2 to 3 months from the date of filing of petition for discharge.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

If the DDs were not deposited by the court in the bank and had been returned to the borrower itself, then he has to submit to the concerned bank with an application to cancel the same and credit the amount to his bank account.If the bank is not responding properly then it may be taken up through the bank's top management.

After that also if there are no progress the bank may initiate suit for recovery.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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