• Misuse of Signed Cheque

I would like to inform you that I hold a saving account in State Bank Of India, ADB Branch opposite Krishi Mandi, Damoh.

My employee misused my signed cheque and made a transfer of INR 9,75,000.00 in his personal account holder at SBI Adhartal Japalpur by my cheque

I did not received any SMS for this debit transaction and nor have I received any call for such high value transaction before the clearance of this cheque. On acknowledgment of this unauthorized activity I have requested bank and Police department to inter-veil and cease my employee's Account which is been executed by both.

Account of my employee is cease both by bank and police, but I want to know how can I get stay order for reversal of amount and for stay order for this account.
Asked 4 years ago in Criminal Law
Religion: Other

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13 Answers

Dear Client,

You should have filed FIR against the employee, than police would have seize/recover the amount and same u can get released from court while pending investigation.

Above seize by police is illegal.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Police cannot hold for more than 15 days to file FIR.

But the present offense is cognizable , police should have filed FIR and than proceeded.

A Constitution Bench of the Supreme Court in Lalita Kumari v. Govt. of U.P [W.P.(Crl) No; 68/2008] held that registration of First Information Report is mandatory under Section 154 of the Code of Criminal Procedure , if the information discloses commission of a cognizable offense and no preliminary inquiry is permissible in such a situation....

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

See the above freezing of account by the police is only precautionary measure.

You have to file an FIR as this is cheating, fraud and breach of trust on FIR the employee shall be arrested and then if the employee doesnot amicable settle and reverse the amount you have to file an application before the court for recovery of amount pending the investigation.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

There can be chance since police is involved the employee is ready to reverse amount without going for criminal case as this is only the fastest way otherwise you have to take orders from court.

Further peruse police to file FIR as on disclosing of any cognizable offence it is mandatory for police to register the FIR.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The immediate action can be done on the part of police only and if you have informed the bank they have to take initiative action on the report of police to hold the amount for withdrawal.

Police need to file FIR under sections 379, 420 and 406 IPC and can make arrest as well.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Zero liability of a customer

If the fraud happens due to negligence from the bank's end, the customer obviously is not liable. For instance, if there is a glitch on the backend of the bank where customer details are compromised, then you will not be liable to pay. Or if bank employees are involved in fraudulent activities where they give away customer details.

The RBI notification states that if a 'third-party' breach happens when neither the bank nor the customer is at fault, and the customer informs the bank within three working days, here, too, the customer is not liable to pay.

Who is a third-party you may ask. Well, scammers and fraudsters are getting more creative by the day. It can happen at an ATM (skimming, card trapping etc.), by using public Wi-Fi, malware in ATMs or bank servers, at merchant outlets where you swipe your credit or debit card, or even on your own computer (using ways like pharming and so on).

So, to protect yourself and your money, the first step is make sure you apply for the SMS and email alerts service of your bank. The second step would be to intimate the bank as soon as you get the alert that money has been debited from your account. Do it within three days. If you do not, then depending on how long you take, your liability increases.

Limited liability of a customer

Now if the bank is at fault, you do not pay, but if the fraud or wrongful debit has happened because of your negligence, then you will have to bear the brunt. This could happen if you mentioned your PIN number or password in passing or left it lying around and someone used it without your knowledge. The good news is that even though this transaction has happened due to your negligence, if you report it to the bank before seven working days (and after three days) from receiving the debit message, the RBI notification says that the per transaction liability of the customer will be limited to the transaction value or an amount set by the central bank, whichever is lower.

And if you take more than seven days, "the customer liability shall be determined as per the bank's Board approved policy," says the RBI notification.

How long will it take for the reversal?

Banks have to credit or reverse the unauthorised electronic transaction to the customer's account within 10 working days from the date of notification by the customer. And once reported, in case of debit card or bank account fraud, the bank should ensure that the customer does not suffer loss of interest. If the transaction has happened on a credit card, the customer should not have to additional burden of interest.

Also, once reported, banks have to resolve the case within 90 days from the date of receipt of the complaint.

Systems to be put in place by banks

RBI's circular has said that banks must provide customers 24/7 access through multiple channels like SMS, email, IVR and so on for reporting unauthorised transactions. A new facility that banks have been asked to provide is that of allowing customers to "instantly respond by "Reply" to the SMS and e-mail alerts and the customers should not be required to search for a web page or an e-mail address to notify the objection".

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

You have already complained to bank and lodged police complaint against unauthorised transfer

2) file suit seek court orders restraining bank from transferring funds lying in employee account

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

You should engage local Lawyer anf file suit restraining bank from transferring funds lying in employee bank account

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

FIR should be filed under section 406 , 420 of IPC against employee for cheating, criminal breach of trust

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

Firslty, if the Police has not registered the FIR then please go before the mazistrate fmuner section 156(3) of CrPC to get it registered.

Secondly, yes, you can pray for the transfer of the money but may not be allowed as the status quo generally maintened by the clurt in such cases till the final conclusion of the same.

Thirdly, and it may take around 2 years to come to an end.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Account of my employee is cease both by bank and police, but I want to know how can I get stay order for reversal of amount and for stay order for this account.

There is no question of stay order or reversal of the amount.

The next step is to file a recovery suit to recover the amount from him besides pursuing the cheating case against him.

You can follow it up through police and the bank authorities on further issue on this criminal complaint.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

I wish to know how can I get stay order from court as Bank informed me that the stay by police is for very short time and police even does not have rights for it.

For this you have to file a recovery suit and implead the bank as necessary party and seek injunction agaisnt bank restraining it from disposing or allowing your employee to operate the account or from withdrawing the amount from his account.

Until the police is seeking to freeze his account, the court may also not come to your rescue to issue stay order since it is a private account of an individual.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

Kindly guide what should I do now. This amount was withdrawal day before yesterday itself and is in my employee's account itself.

If the police is not cooperating then you may immediately file a petition under section 156(3) cr.p.c. seeking direction to police to initiate proper legal action on the complaint pending before them and to register FIR if necessary.

This is besides the money recovery suit and an injunction application in the same suit.

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

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