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The hearing being conducted through video conferencing ,The High Court of Delhi in the case of Abhinav Chawla vs RBI & Ors has sought a response from the Reserve Bank of India in a petition where the fate of an expired bank cheque which could not have been processed as banks were shut due to the lockdown amid COVID-19 Pandemic.
The facts of the case are, the petitioner had deposited a cheque of Rs 10 lakh for presentation in an HDFC bank’s branch on 8th April, during its validity. The cheque had to expire on 16th April. Due to the ongoing COVID-19 Pandemic the branch where the cheque was deposited was sealed by the District Administration.
Thus, there was a delay on the part of the bank in presenting the cheque to the clearing house. On 18th April an email was received by the petitioner from HDFC bank stating that the cheque had been returned to petitioner with a remark of instrument being stale.
The petitioner contended that it was bank’s inability to clear the cheque on time and he cannot be held accountable as he submitted the cheque within the statutory period thus, he cannot be penalised for bank’s doing. He remarked.
He also claimed and brought it in the attention of the court that as of now, there are no specific guidelines or provisions which are released either by the Reserve Bank of India or the Central Government in respect to the future of the instruments that have expired because of the lockdown.
On 19th May RBI, central government and HDFC Bank was issued a notice by the Court for seeking their response in the matter. When the matter again taken up on 28th May the Learned Council appearing for RBI pleaded that RBI is unable to give any kind of relief to the petitioner in view if the statutory provisions. Needful would be done within 10 days he stated and rejoinder will be filed a week after.
As no reply was filed in the matter, a Single Judge Bench of Justice Jayant Nath granted time to RBI to do the same as stated above.
The petitioner in the meantime is required to implead the drawer of the cheque as well as the bankers of the drawer which is Yes Bank. The matter is next listed on 30th May.
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