Document Fragment View
Fragment Information
Showing contexts for: cheque outdated in M/S Axis Bank vs K. V. S. S. Sastry S/O. Late K.V.S. Sarma on 26 February, 2026Matching Fragments
2. In brief, as per the case of the complainant, he was having an account with OP-1 (Axis Bank) and had deposited a cheque dated 21.08.2018 for sum of Rs.20 lakhs on 19.11.2018 in the drop box of the Bank. The said cheque was issued by M/s Volio Technologies Ltd. in discharge of their liability and validity of cheque was upto three months. OP-1 sent a courier on 30.11.2018 which was received by the complainant on 04.12.2018, wherein the cheque return memo was enclosed with endorsement "cheque/instrument outdated". On inquiry from the bank, complainant was informed that they had sent the cheque for clearance immediately and the same was returned on 30.11.2018. When the complainant failed to get a reasonable response for non encashment of the cheque despite being deposited within the validity period, legal notice dated 07.01.2019 was issued. Complainant, claims to have suffered loss of Rs.20 lakhs on account of failure of OP-1 (Bank) to present cheque for encashment in time.
10. At the outset, reasons recorded by the learned State Commission in para 11 to 14 may be reproduced for reference:-
"11). Now coming to the next point, it is a fact home by record that the cheque was dropped by the complainant on 19.11.2018. It is the contention of the opposite party that the complainant had cleverly not mentioned the time of cheque drop; but infact the complainant had dropped the cheque in between 1.30 to 1.40 and the cut-off time for the clearance is 11.30 a.m. which is clearly mentioned on the drop box and since the cheque was dropped beyond 11.30 a.m. the same was sent for clearance on 20.11.2018. Having said that at para no. 7 of the written version, the opposite party again states that "As per process, cheque deposited in drop Box are taken out at three intervals i.e. 10.35 (a.m.) and at 3.45 (p.m.), 6.10 (p.m.). As such, the subject cheque was taken out of the Drop Box after 3.00 p.m. of 19.11.2018 and the same was lodged in the clearing on 20.11.2018 at Axis Bank Kothapet Branch in the next day's Zone for uploading to the NPCI on 20.11.2018." It is further stated that as per the RBI guidelines it is the presenting bank's responsibility not to present the stale cheques in clearing, in view of such responsibility the CTS Member had returned the cheque with an endorsement "Instrument is outdated/stale. "