16 December 2019
Very few suppliers cheque issued and not presented before the expiry of validity. We understand from the suppliers that they have not received the cheque and it was lost in transit. Normally , we have the practice of getting Indemnity bond from the supplier with the company seal and signature and issue a fresh cheque.
But some suppliers arguing that cheque was not presented before expiry and fresh cheque to be issued without asking indemnity bond .
We request expert opinion whether issue of cheque without indemnity bond for expired cheque & not received by the company is legally correct and also accounting point of view also
01 March 2020
Suggest please take letter from vendors as they have not received cheque , give letter to the Bank for stop payment of such instrument and issue fresh cheque.
CAclubindia
