It's Lokendra. I really want to Know what is the procedure to cancel a demand draft which is made in favour of Any Creditor which is lost,what is the requirement for reissue or cancel particular Draft which was lost.Can It be cancelled and the same amt.refunded to Draft Maker or It can be only reissue in favour of that Creditor.Can anyone helpme out according to Indian Instruments Act.
Its a simple procedure, make a letter to the bank stating cancellation details, signed by authorised signatory,attach Demand draft( if DD is Lost , attach the acknowledement of DD Challan) the bank will transfer the fund to your account.
It may be noted some banks have prescribed format for DD cancellation.
Hope i have hit the target
Thanks for your reply. But I have gone to bank authorities and they told me that a Particular draft which is made in favour of any third party, It should only be reissue in favour of that party,if it is lost and conditions for reissue that lost draft is that Third party should fill up the particular form given by bank. The Draft amt.cann't be refunded to Draft maker in any condition. Is there any rule of that type.I am bit confused. Please solved me out.
Thanks for reply
If you want to cancel a draft which is with you just take it to your banker, stick a revenue stamp on the back, sign it over and it will be cancelled.
It you want to cancel a draft which is lost it has some thing to do like.
You should atleast have the draft number.
1)Ask the concerned person(the name on whic the Draft is taken) to frank the paper for 100Rs/-(Statmpaer).
2)On that paper ask him to write the details of the Draft like the name on whom the draft is taken,draftnumber,amount & the bank which you have taken the draft.
3)Ask him & his banker to sign on the document. & post them to you.
4)After receiving it the signing authority of your organisation should sign the document.
5)Then present the whole thing to your bank explaining him.
Hoping this would help you a bit .
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