What is the remedy if the cheque issued by Government is misplaced or lost in transit?
The payee of the cheque has to approach the cheque issuing authority and apply for a duplicate cheque explaining the circumstances under which the original cheque was lost or misplaced. After satisfying himself, the drawer may issue a letter to the payee bank requesting it to record STOP payment against the lost cheque. The bank thereafter checks whether the cheque is already paid. If not paid, it records ‘STOP PAYMENT’ order till the expiry of the validity of the cheque and a ‘NON PAYMENT CERTIFICATE’ is issued.