• Loan related cheque issued to us, cheque is from SBH Bank

A business man owed money to us , he gave SBH cheques to us 33 months ago  and a written promissory note.

He is not repaying money for last 30 months.
details:
SBH was merged with SBI
As per posts in internet, SBI stated  merged banks cheques are valid only till 31st Dec 2017
Account is in Branch: SBH Miryalaguda
Cheques are NOT crossed, or not account payee 
These cheques might be non-cts

Questions:
Can we go to same branch ( now SBI Miryalaguda [SBH Miryalaguda before merger ]) and present cheque in the branch for encash?

In cheque is honoured, no cash in account, can the Bank give letter?

Thanks and Regards
Asked 1 year ago in Civil Law from Hyderabad, Telangana

1) if cheque validity period has expired you cannot present cheque now for payment

2) best option is to issue legal notice to borrower to repay your money

3) if he fails to pay file summary suit under order XXXVII of code of civil procedure

4) suit has to be filed within period of 3byears of money being due and payable

Ajay Sethi
Advocate, Mumbai
66959 Answers
4043 Consultations

5.0 on 5.0

You had stated SBI merged banks cheques are valid only till 31st Dec 2017

Account is in Branch: SBH

Hence you cannot present these cheques

Ajay Sethi
Advocate, Mumbai
66959 Answers
4043 Consultations

5.0 on 5.0

The cheques of associated banks of SBI which were merged on 1 st April 2017 were valid till 31 December 2017 So now these cheques are not valid, so now in this case you have to issue a legal notice the said cheques are invalidated and ask for recovery of same amount from the person.

in case he fails to pay file a suit of recovery suit,

Shubham Jhajharia
Advocate, Ahmedabad
19345 Answers
75 Consultations

5.0 on 5.0

The new cheque books are issued under the banner of SBI and the validity of cheques of former Associate Banks of SBI was extended till 31st December, 2017 only.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

Time for presenting the cheques has lapsed according to the notification of the banks. The cheques have lost their validity. You can get any relief by presenting the cheques, and if they are dishonored no remedy is available to you because the cheques are not valid cheques.

Dishari Chakrabarti
Advocate, Kolkata
9 Answers

4.0 on 5.0

sir

any cheque issued for discharging a legally enforceable debt alone can be utilized for realizing the debt. in your case you have stated that the person who borrowed has executed promissory note and issued cheques 33 months ago. hence the said cheques are not issued for discharging liability but are issued towards security as such you cannot present those cheques now.

in view of the merger of SBH with SBI, since the cut-off date is crossed the cheques available with you are now not valid.

since the limitation for enforcement of promissory note is three years and already 33 months elapsed, please immediately institute a civil suit for recovery of the debt after issuing a demand notice to the borrowed

Sricharan Telaprolu
Advocate, Hyderabad
39 Answers
2 Consultations

4.0 on 5.0

You need to first deposit the cheque then after the memo of dishonour and it's remark we can determine the exact positive to file 138 case against him.

Prashant Nayak
Advocate, Mumbai
12901 Answers
23 Consultations

4.6 on 5.0

If you have to file a cheque bounced case then you should mark it as account payee and deposit it to your bank account for realization.

The cheque will be returned dishonored, after which you can take action as per provisions of section 138 NI act.

T Kalaiselvan
Advocate, Vellore
56726 Answers
702 Consultations

5.0 on 5.0

1. Cheques are not dated, so cheques are valid

2. cheques are non-cts

3. cheques are NOT crossed ( NOT account payee )

You can cross the cheque in the corner of the cheque which indicates as a/c payee.

Dont worry about the technical details, present the cheque to your bankers for collection, let the cheque be returned dishonoring it, you can take action accordingly on the advice of your advocate,

T Kalaiselvan
Advocate, Vellore
56726 Answers
702 Consultations

5.0 on 5.0

Check latest guidelines by SBI bank regarding SBH Merger if SBI Bank accepts cheques then you present the cheques without further delay.

SBI banks must have updated cheques and account numbers of SBH account Holders, only they can guide you in this regard.

After this enquiry i can guide you further but remember in case cheques are not valid now in that case also you can file civil case against that person.

Jitender Kumar
Advocate, New Delhi
35 Answers

4.0 on 5.0

By 31/0/3/2018 you can present cheques for clearing after that cheque would loose validity as I have dealt with identical situation 2 days ago hereby advised you accordingly.

Arihant Nahar
Advocate, Indore
83 Answers

4.7 on 5.0

Dear Sir,

My answers are as follows:

Can we go to same branch ( now SBI Miryalaguda [SBH Miryalaguda before merger ]) and present cheque in the branch for encash?

Ans: Yes, you can.

In cheque is honoured, no cash in account, can the Bank give letter?

Ans: Yes it has to . For any thing get endorsement with the bank in writing.

=====================================

Details on availing SBI cheque books by March 31

SBI said this week that the cheque books of its erstwhile associate banks and Bharatiya Mahila Bank (BMB) which merged with it will not be valid after March 31. Five erstwhile associate banks - State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP), State Bank of Hyderabad (SBH)- and BMB merged with SBI with effect from April 2017.

Kishan Dutt Kalaskar
Advocate, Bangalore
4434 Answers
112 Consultations

5.0 on 5.0

Hi

Since the cheques are undated and Non CTS cheques, it is better to write the present date in cheque and present the same in your bank at Hyderabad.

The cheque will definitely be returned by the clearing banker stating that it is a Non CTS cheque and you can always file a criminal complaint under section 420 IPC and 406 IPC issuer on the grounds that

a) the person gave you non -CTS cheque with the sole intention of cheating and defrauding you.

You should also file a civil suit for recovery of monies based on promissory notes and returned cheque.

Please note that earlier cheque bounce cases (138 NI) were fast tracked. however becoz of overload of cheque bounce cases, in recent 12 months, criminal cases are decided faster compared to cheque bounces in all hyderabad and secunderabad courts.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
1658 Answers
298 Consultations

5.0 on 5.0

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