Dishonour of Cheque – Section 138 of the Negotiable instruments Act

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This article on “Dishonour of Cheque – Section 138 of the Negotiable instruments Act” gives a comprehensive  overview about all aspects of cheque bouncing and Cheque Dishonour  as per laws in India

WHAT IS A CHEQUE?

Section 6  of Negotiable Instruments Act defines cheque as :

‘6.   “Cheque“.-A “cheque” is a bill of exchange drawn on a  specified  banker and not expressed to be payable otherwise than on demand and it  includes  the  electronic image of a truncated cheque and a cheque  in  the electronic form.  Explanation I.-For the purposes of this section,  the expressions-

(a)  “a  cheque in the electronic form” means a cheque which  contains  the  exact  mirror image of a paper cheque, and is generated,  written  and  signed  in a secure system ensuring the minimum safety  standards  with  the  use  of  digital  signature  (with  or  without  biometrics  signature) and asymmetric crypto system;

(b)  “a truncated cheque” means a cheque which is truncated during the  course  of  a clearing cycle, either by the clearing house or  by  the  bank whether paying or receiving payment, immediately on generation of  an  electronic  image  for  transmission,  substitu  ing  the  further
physical movement of the cheque in writing.

 Explanation  II.-For  the  purposes of this  section,  the  expression  “clearing  house” means the clearing house managed by the Reserve Bank  of India or a clearing house recognised as such by the Reserve Bank of  India.’.

E-CHEQUE

 Electronic cheque (e-cheque) is the image of a normal paper cheque generated, written and signed in a secure system using digital signature and asymmetric crypto system. Simply said an electronic cheque is nothing more than an ordinary cheque produced on a computer system and instead of signing it in ink, it is signed using the digital equivalent of ink. After the coming into force of The Negotiable Instruments (Amendment And Miscellaneous Provisions) Act, 2002, legal recognition has been accorded to e-cheques and they have been brought at par with the normal cheques. Now, a ‘cheque’ includes an e-cheque.

SECTION 138 NEGOTIABLE INSTRUMENTS ACT 1881

 Section 138 Negotiable Instruments Act as it is at present after coming into force of The Negotiable Instruments (Amendment And Miscellaneous Provisions) Act, 2002:

138. Dishonour of cheque for insufficiency, etc., of funds in the  account:

Where any cheque drawn by a person on an account  maintained  by  him  with a banker for payment of any amount of money  to  another  person  from  out of that account for the discharge, in  whole  or  in  part, of any debt or other liability, is returned by the bank  unpaid,  either  because of the amount of money standing to the credit of  that  account  is insufficient to honour the cheque or that it  exceeds  the  amount  arranged  to be paid from that account by an   agreement  made  with  that  bank,  such person shall be deemed to  have  committed  an  offence  and shall, without prejudice. to any other provision of  this  Act, be punished with imprisonment for a term which may extend to  two  years, or with fine which may extend to twice the amount of the cheque,  or with both: 

   Provided  that  nothing  contained in this  section  shall  apply  unless-

          (a) the  cheque  has been, presented to the bank  within  a period  of six months from the date on which it is  drawn  or  within the period of its validity, whichever is earlier;

          (b) the payee or the holder in due course. of the cheque as the  case may be, makes a demand  for  the  payment  of  the said  amount of money by giving a notice, in writing,  to
the  drawer  of the cheque, within thirty days of the receipt  of information by him from the bank regarding the return of  the cheque as unpaid; and

          (c) the drawer of such cheque  fails to make the payment of the said amount of money to the payee or, as the case may be, to  the  holder in due course of the cheque,  within                  fifteen  days of the receipt of the said notice.

Explanation.-For  the  purposes of this section, “debt  or  other  liability” means a legally enforceable debt or other liability.

 

INGREDIENTS OF OFFENCE UNDER SECTION 138

  1. The cheque should have been issued for the discharge , in whole or part, of any debt or other liability
  2. The cheque should have been presented within a period of six months or within its validity period whichever is earlier.
  3. The payee or holder in due course should have issued a notice in writing to the drawer within 30 days of the receipt of information by him from the Bank regarding the return of the cheque as unpaid.
  4. After receipt of the said notice from the holder in due course, the drawer should have failed to pay the cheque within 15 days of receipt of the said notice.

GROUNDS FOR DISHONOUR OF CHEQUE

“Funds Insufficient” :

Section 138 describes the above ground of insufficient funds in the account of the drawer of the cheque in the following words:

The amount of money standing to the credit of the account of the drawer on which the cheque is drawn is insufficient to honour the cheque, or

  1. The cheque amount exceeds the amount that can be paid by the bank under an arrangement entered into between the bank and the drawer of the cheque.

However, besides the above, the Courts have also accepted some other heads which though expressly do not say ‘insufficient funds’ but are implied to mean the same and a cheque dishonoured on any of these grounds can be used for the purpose of prosecution under section 138 Negotiable Instruments Act. Some of theses grounds are:

1.     Account Closed: “ It is an offence under section 138 of the Act – Closure of account would be an eventuality after the entire amount in the account is withdrawn –  It means that there was no amount in the credit of ‘that account’ on the relevant date when the cheque was presented for honouring the same”

This has been held by the Hon’ble Supreme Court of India in-

NEPS MICON LTD. AND OTHERS  VS.  MAGMA LEASING LTD.

1999 ISJ (BANKING) 0433; 1999 (1) APEX C.J. 0624; 1999 AIR (SCW) 1637

2.     ‘Stop Payment’ instructions:

“Once the cheque has been drawn and issued to the payee and the payee has presented the cheque, ‘stop payment’ instructions will amount to dishonour of cheque.”

MAHENDR S. DADIA VS. STATE OF MAHARASHTRA

I (1999) BANKING CASES (BC) 133 (17/03/1998)             

3.     ‘Refer to drawer’:

“ …….. makes out a case under section 138 of the Negotiable Instruments Act, 1881 which expression means that there were not sufficient funds with the bank in the account of the respondent”

LILY HIRE PURCHASE LTD. VS. DARSHAN LAL,

(1997) 89 COMPANY CASES 663 (10/01/1997)

4.     ‘Not a clearing member”:

“Cheque returned with endorsement ‘not a clearing member’. To attract the provisions of section 138 NI Act, the cheque should be presented with the bank on which it I drawn- If the cheque is not presented to the bank on which it is drawn, then provisions of sec 138 would not be attracted. If bank on which the cheque is drawn is not a clearing member of the Reserve Bank of India – unpaid return of the cheque would not attract section 138.”

CHAIRMAN, JAWAHAR COOPERATIVE URBAN BANK LTD. AND OTHERS  VS.  RAMANJANEYA ENTERPRISES, HYD. AND ANOTHER

2005 (5) CRIMINAL REPORTED JUDGEMENTS (CRJ) 0591;

2005 (2) DISHONOUR OF CHEQUE REPORTER (DCR) 0169

5.     Effect of other endorsements:

It has been repeatedly held by courts that manifest dishonest intention of the drawer resulting in dishonour of the cheque would lead to prosecution under section 138 Negotiable Instruments Act regardless of the actual ground of dishonour.

OTHER NOTABLE ASPECTS OF OFFENCE UNDER 138 N.I. Act

COMPLAINTS AGAINST A COMPANY:

Section 141 of Negotiable Instruments Act says:

141. Offences by companies:

(1) If the person committing an offence under  section  138 is a company, every person who, at  the  time  the offence  was committed, was in charge of, and was responsible to,  the company for the conduct of the business of the company, as well as the company,  shall  be deemed to be guilty of the offence  and  shall  be liable to be proceeded against and punished accordingly:

– Provided that nothing contained in this sub-section shall  render  any  person  liable to punishment if he proves that  the  offence  was  committed  without  his knowledge, or that he had  exercised  all  due  diligence to prevent the commission of such offence.

– Provided  further that where a person is nominated as a Director of a  company  by  virtue  of his holding any office or  employment  in  the  Central  Government  or  State Government or a  financial  corporation  owned  or controlled by the Central Government or the state Government, as  the case may be, he shall not be liable for prosecution under this Chapter.

(2) Notwithstanding anything contained in sub-section (1), where  any  offence under this Act has been committed by a company and it  is  proved  that  the  offence  has been committed  with  the  consent  or  connivance of, or is attributable to, any neglect on the part of,  any  director,  manager,  secretary or other officer of the  company,  such  director, manager, secretary or other officer shall also be deemed  to  be guilty of that offence and shall be liable to be proceeded  against  and punished accordingly,

Explanation-For the purposes of this section,-

(a)”company” means any body corporate and includes a  firm  or other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.

The Hon’ble Supreme Court has held that merely being a director of a company is not sufficient to make a person liable under section 141 of the Act. A director in a company cannot be deemed to be in charge of and responsible to the company for the conduct of its business. The requirement of section 141 is that the person sought to be made liable should be in charge of and responsible for the conduct of the business of the company at the relevant time. This has to be averred as a fact and there is no deemed liability of a director in such cases.  AIR 2005 (SCW) 4740; AIR 2005 SC 3512, AIR 2007 SC 1682

Supreme Court has also held that for the directors of the company to be made liable for an offence under sec 138, the complaint must contain specific allegations against directors as to how directors are in charge and responsible for conduct of business of company. Mere allegation in complaint that accused persons are directors and responsible officers of the company is not sufficient. AIR 2007 SC 1454

COMPLAINT AGAINST PARTNERS

Averment in a complaint that accused (partners) at relevant time were in charge of and responsible to the partnership firm for conduct of its business are necessary to initiate process against them for an offence under sec 138 NI Act. In absence of requisite averments in complaint, the offence against accused / partners could not be made out.
AIR 2004 SUPREME COURT 4274.

DEBT OR LIABILITY

Explanation to section 138 makes it clear that ‘debt or other liability’ as mentioned in sec 138 mean a legally enforceable debt or other liability.
Various High courts and the Supreme Court have explained this many a time.

“Unless issuance of cheque is pleaded and proved to discharge a legally enforceable liability, dishonour is no default entailing criminal proceedings. Complaint in respect of such a cheque issued as a gift, is not maintainable.”  1995 Andh LT 468, 1997 Cr LJ 4237 AP; 1998 (3) Bank LJ 279;

“It is only debts alive at the time when the cheque dishonoured are issued. Any subsequent claims in favour of the complainant cannot be made the subject of dispute under section 138 NI Act” 1997 VI AD DELHI 585

Supreme Court has held:
“When it is a legally enforceable debt or a liability only then section 138 applies and relationship of the parties is not at all a factor germane to the proceedings”
2004 (1) APEX C.J. 0273; 2004 (1) CR.C.C. 0693

COMPLAINT UNDER 138 CAN BE FILED BY PLEADER / POWER OF ATTORNEY HOLDER

Cognizance of offence of cheque dishonour – No condition precedent that complaint should have been signed by the payee as holder of cheque – A complaint need not be presented by complainant himself – Pleader or counsel in whose favour vakalatnama has been executed by complainant is competent to file complaint.
AIR 2007 (DOC) 286 (RAJ.);    2 (2007) BC 206 (RAJ.)

“Section 142 of Negotiable Instruments Act does not specifically state that the payee or holder in due course of the cheque shall lodge the complaint himself; the power of attorney holder who has every authority to sign and act on behalf of the principal can lodge a complaint under sec 138 NI Act.”
AIR 2007 (DOC) 51 KER.;   2006 (3) BANK J 425 (KER)

DEATH OF ORIGINAL COMPLAINANT

Death of original complainant after filing of complaint – Son of the deceased came to be added as complainant subsequent to taking cognizance of offences – Proceedings do not abate and son of deceased complainant can come on record and continue prosecution.
AIR 2007 (DOC) 271 (A.P.) ;   2006 (3) CIVIL COURT CASES 294

Offence of dishonour of cheque – Death of complainant at stage of evidence of defence – His legal heirs entitled to continue prosecution.
AIR 2007 (DOC) 222 (RAJ.) ;  2007 (1) RAJ L W 4

DEATH OF ACCUSED

Dishonour of cheque – Proceedings in the complaint alleging offence under section 138 cannot be initiated against legal heirs of the person who had issued the cheque.
AIR 2007 (DOC) 58 (P&H) ; 2006 (3) BANK J 327 (P&H)

SUCCESSIVE PRESENTATION OF CHEQUES

“ A cheque can be presented any number of times during the period of its validity by payee. On each presentation of the cheque and its dishonour a fresh right – and not cause of action – accrues in his favour. He may, therefore, without taking pre-emptory action in exercise of his such right under Cl (b) of sec. 138, go on presenting the cheque so as to enable him to exercise such right at any point of time during the validity of the cheque.”
AIR 1998 SUPREME COURT 3043

SETTLEMENT DURING TRIAL

The payment by the accused of the full cheque amount during the pendency of trial under sec 138 does not absolve the accused of his liability for the offence of dishonour of cheque. However, the courts take a lenient view in such cases and the accused is set free or punished lightly.
AIR 2007 (DOC) 264 DELHI is an illustration of such cases.

The Delhi High Court has also held that if during the pendency of a dispute under sec 138 NI Act the parties enter into a settlement, it should be respected by the courts as proceedings under sec 138 are quasi criminal in nature.
AIR 2007 (DOC) 264 (DEL.)

EXAMINATION OF COMPLAINANT ON OATH

“The non-obstante clause in sec. 142 or 145 of the NI Act does not override the provisions of sec. 200 CrPC and it is mandatory for the magistrate to examine the complainant who has filed the same under sec 138 of the NI Act though with an affirmation as regards truthfulness of the contents of the complaint. It, therefore, follows that the magistrate is obliged and duty bound to examine upon oath the complainant and his witnesses before issuance of process under section 204 of CrPC though there is a solemn affirmation at the foot of the complainant by the complainant.”
AIR 2007 (NOC) 1372 (BOM) ; 2007 (3) AIR BOM R 181 (DB)

POST DATED CHEQUE

Post dated cheque – Is not a “cheque” on the date it is drawn – It becomes a “cheque” only on the date written on it – Till that date post-dated cheque remains a bill of exchange.
The post-dated cheque becomes a cheque within the meaning of section 139 on the date which is written thereon and not the 6 months period is to b reckoned for the purposes of proviso (a) to sec 138 from the date. Thus in case of a pot-dated cheque, six months period is to be reckoned from the date mentioned on the face of the cheque and not any earlier date on which the cheque was made over by the drawer to the drawee.
AIR 2001 SUPREME COURT 1315

COMPLAINT AGAINST PARTNERS

MATERIAL ALTERATION:
Section 87 of Negotiable Instruments Act provides as under:

87.Effect  of  material alteration:

Any material  alteration of a negotiable instrument renders the same  void as  against any one who is a party thereto at the time of making  such alteration  and does not consent thereto, unless it was made in  order to carry out the common intention of the original parties:

Alteration by indorsee _   And  any such alteration, if made by an indorsee,  discharges his  indorser  from all liability to him in  respect
of the consideration thereof.

The  provisions  of  this section are  subject  to  those  of sections 20, 49, 86 and 125.

Respondent issued a blank cheque without mentioning the date and amount and sent it with a letter requesting complainant to present it after a month – Act of complainant in filling up amount portion and date was a material change and it could not be enforced even though it was issued for a legal liability – Alteration without the consent of the party who issued the cheque rendered cheque invalid.
2004 (1) CRIMES 567 (AP)

Every alteration is not material alteration – Only such alteration which would adversely affect interest of the other side could be called material alteration.
AIR 2007 (NOC) 1082 BOM. ;  2007 (2) AIR BOM R 442

Date altered by adding 1 before ‘2’ in the month to make it appear that cheque was issued on 25.12.1993 so as to bring the cheque within validity period. These are material alterations. Accused liable to be acquitted in such cases.
2005 (2) ISJ (BANKING) 115; 2005 (2) DCR 37

DEMAND NOTICE

Proviso to Section 138 NI Act provides as follows:

Provided  that  nothing  contained in this  section  shall  apply  unless-

(a) the  cheque  has been, presented to the bank  within  a  period  of six months from the date on which it is  drawn  or   within the period of its validity, whichever is earlier;

(b) the payee or the holder in due course. of the cheque as  the  case may be, makes a demand  for  the  payment  of  the said  amount of money by giving a notice, in writing, to  the
drawer  of the cheque, within thirty days of the receipt  of  information by him from the bank regarding the return of  the cheque as unpaid; and

(c) the drawer of such cheque  fails to make the payment of the said amount of money to the payee or, as the case may be, to  the  holder in due course of the cheque,  within  fifteen
days of the receipt of the said notice.

      Explanation.-For  the  purposes of this section, “debt  or  other  liability” means a legally enforceable debt or other liability.

Supreme Court has held time and again that a cause of action for filing a complaint under section 138 accrues to the drawee of a cheque only after a notice is issued to the drawer within the prescribed period after receipt of information by him regarding the dishonour of cheque and the subsequent failure of the drawer to make the cheque payment within the prescribed time, i.e. 15 days from the receipt of notice by him.
 AIR 1998 SUPREME COURT 3043

Demand notice – Sent under certificate of posting returned with endorsement ‘not claimed’ – Is deemed to be served
AIR 2007 (NOC) 942 (KAR); 2007 (2) AIR KAR R 199

Demand notice – Giving of notice in some address is not enough for complying with statutory requirement of notice – Notice should be given in the correct address – Further, mere giving of notice will not be sufficient when notice is returned stating that it was reserved because it is not the correct address or door is locked in redirected address – Return of acknowledgement card with such endorsement – Notice is not served.
AIR 2007 (DOC) 131 (KER) ; 2007 (1) KLJ 10

Demand notice – Service of – Can be proved only by submitting postal receipt or by calling record of post office – In absence of postal receipt no presumption can be drawn in favour of applicant for sending said notice through registered post – Acknowledgement due receipt without any letter number or postal receipt number mentioned in it – Not having any seal of post office either at the time of sending to addressee or at the time of returning to the sender, cannot be accepted as compliance with provisions of sec 138 (b) of the Act.
AIR 2007 (DOC) 253 (M.P.); 2007 (51) AIC 239

BLANK CHEQUE

Respondent issued a blank cheque without mentioning the date and amount and sent it with a letter requesting complainant to present it after a month – Question whether blank cheque will come within the definition of cheque? – If the cheque is not drawn for a specified amount it would not fall within a definition of bill of exchange –  Act of complainant in filling up amount portion and date was a material change and it could not be enforced even though it was issued for a legal liability – Alteration without the consent of the party who issued the cheque rendered cheque invalid.
2004 (1) CRIMES 567 (AP)

Admission of signature on the cheque is not equivalent with admission of execution – Right of the accused to contend that a blank signed cheque was mis-utilised by the payee cannot be taken away by such mere admission of signature.
AIR 2007 (DOC) 195 (KER.); 2007 (1) KLT 525 (KER)

Accused entered into security arrangement with complainant for sale of its product – Accused issued blank cheques as security to security agency agreement – No debt or liability existed when cheques were handed over to drawee complainant – Complaint based on blank cheque issued towards security is not maintainable.
AIR 2007 (DOC) 269 (DEL); 2 (2007) B C 69

PRESUMPTION UNDER SECTION 139 NI ACT

Section 139 Negotiable Instruments Act provides:

139. Presumption in favour of holder:

It shall be presumed, unless the  contrary  is  proved, that the holder of a  cheque  received  the cheque of the nature referred to in section 138 for the discharge,  in whole or in part, of any debt or other liability.

“The effect of these presumptions is to place the evidential burden on the accused of proving that the cheque was not received by the complainant towards the discharge of any liability. Because both sections 138 and 139 require that the court shall presume the liability of the drawer of the cheques for the amounts for which the cheques are drawn…it is obligatory on the courts to raise this presumption in every case where the factual basis for the raising of this presumption had been established. It introduced an exception to the general rule as to the burden of proof in criminal cases and shifts the onus on to the accused.”
AIR 2001 SUPREME COURT 3897

(C) By S. Chopra for Vakilno1.com

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Have Your Say
  1. [...] Dishonour of Cheque – Section 138 of the Negotiable instruments Act [...]

  2. pramod ranjan behera says:

    sir,
    what if a general public gives aagreement with a cheques ,suppose A afriend of b wants rs30000/- so Bgave the amount of rs30000/-and also had a written agreement on stamp paper ackwoledging his debt, but it is not notrart attested but had 2 witness sign,now the cheque is dishonor by stop payment , can it be challenged in the court ?what it result ?

  3. pramod ranjan behera says:

    sir,
    suppose A afriend of B wants rs30000/- so B gave the amount of rs30000/-and also had a written agreement on stamp paper acknowledging his debt, but it is not notrary attested but had 2 witness sign,now the cheque is dishonor by stop payment , can it be challenged in the court ?what it result ?

  4. Jastej S (Team Vakilno1) says:

    yes you can file a criminal complaint u/s 138 Negotiable Act. And you can also file a civil suit for recovery.

  5. tvrao says:

    good judgements

  6. [...] Dishonour of Cheque – Section 138 of the Negotiable instruments Act [...]

  7. S. Mahendran says:

    I got interesting tips, Thanks.

  8. The article is informative.thanks to you.
    Professor PC Jain

  9. surendra. P. says:

    when you establish the legal enforceble liability of payer, you can take penal action aganist the payer by filling complaint under section 138, 142 if NI Act, or 420 of I P C, or civil suit basing on the instrument and written agreement. first you decide the content of written stamped paper, then come to the conclusion whether the agreement is hand letter, agreement or promissory note etc. the nominiculture of document decide the nature of document, preamble of document is not decide the nature of document.

  10. bhuban says:

    sir,
    cheque issued to brother of complainant in 2001,deu to death of brother cheque not recollected,by altaretion in year 2001 to 2004 without counter signature ln order to bring limitation to file case.what is caselaw and citation please advise

  11. Jastej S (Team Vakilno1) says:

    Case laws and citations depends upon customization. you can send us the copy of the case file and then we can suggest you on various options. Anyhow, from the averments made by you, the plausible options will come into existence at the time of the cross examination of the person who has filed the case. You can also file a case for fraud and forgery.

  12. Aks says:

    If I do “stop payment” to prevent a fraud will that also have legal implication provided I had sufficient balance in my account.

    Thanks,Aks

  13. have very valid information

  14. Shrinkar says:

    My relative was made director of company ( being senior employee). Company issued a cheques which bounced. Compliant has filed cases against company & all directors. How can be defend. Can we use superem court jugdement AIR 2005 (SCW) 4740; AIR 2005 SC 3512, AIR 2007 SC 1682 sited above. My relative has only 1% shares in a company which were alloted to him. He has not invested any money in the company.
    Their promotor director in convicted in some other cases & is in jail. Now one of the complaint wants to drop first 2 accused names i.e. company & promotor director ( being in jail). Will it be our favour ? How to defend or chaange in this case.

    Please advise
    Regards,
    Shrinkar

  15. Jastej S (Team Vakilno1) says:

    It all depends on the facts and circumstances of the case. A perusal of the complaint and certain other important documents is necessary. Your query can be dealt with only in a customized manner.

  16. ISHAM SINGH ARNAICHA ADVOCATE says:

    I WANT TO KNOW THAT IN U/S 138/142 OF N.I ACT CHARGE CAN BE FRAMED ON ACCUSED.

  17. Jastej S (Team Vakilno1) says:

    In a proceedings u/s 138 NIA, charges are not framed and only notice of accusation is served.

  18. aditi says:

    is there any recent amendment in the act regarding no criminal proceeding u/s 138?
    how to defend if the company is facing capital crunch and hence not able to honor the cheque?

  19. Harom says:

    Dear Sir,

    I have given a cheque to a person and due to some reason i have stoped the cheque. now that person filled the case stating that, he give me friendly/personal loan and i have given the cheque against that amount which is bounced but in reality it was not a deal. so if court aks me pay the amount then can i ask to produce the proof of that loan? ..please help

  20. Jastej S (Team Vakilno1) says:

    A cheque carries a presumption that it was given for some consideration. You might land into trouble. Therefore, try to sort out the matter as soon as possible.

  21. Jastej S (Team Vakilno1) says:

    Your query is very sketchy. It can be answered only in a customized manner.

  22. H.P.Singh says:

    hi, i issued a blank cheque as security to a company 3 years back and the payment of the goods was made in advance seprately. next dealing was done in this financial year and payment was made in advance. now i received a notice u/s 138 from the company for non payment of penality of rs.656.23 for non submission of “c” form and they used the same blank cheque to retrieve this penality but since the same account was closed almost two years back. the bank returned the cheque. notice says we intentionally asked the banker to mark the cause as account closed instead of our inability to pay this money. since my dealings with the company were more than 2 lakh and whole payment was made in advance how can i do this. kindly advice

  23. Team,
    Iam working in financial corporation ltd.
    Earlier our authorized officer has field a complaint(Sec 138-NI act) against our customer, but the officer has resigned and company has given authority some other employee the same was submitted in the court through our panel advocate, so the judge was not accepting the new person for attending the court and he is saying that there is a no law for changing the authorized person, but our advocate is saying all other courts are accepting this type of authority, then the judge was asked provide if any judgment copy is available with you.
    Hence request your suggestion on this

  24. Jastej S (Team Vakilno1) says:

    Judgments can be provided only in a customized manner.

  25. Jastej S (Team Vakilno1) says:

    I think you must settle the matter with the company as soon as possible. If the trial u/s 138 Negotiable Instruments Act gets started, then the same might linger on for years and you will have to prove your innocence during the trial.

  26. Anil Kumar says:

    Dear sir,
    I issued a cheque of 1 lakh to my relative in the name of his firm and in return he gave me a cheque of 1 lakh. when I presented the cheque it was bounced.
    In the case filed by my advocate he has not made a party to the firm and made a party to the partner who signed the cheque. At the time of argument advocate of other party raised this issue.
    What are the options now? Please guide earliest possible.
    THANKS

  27. aNIL kUMAR says:

    Dear sir,
    I issued a cheque of 1 lakh to my relative in the name of his firm and in return he gave me a cheque of 1 lakh. when I presented the cheque it was bounced.
    In the case filed by my advocate he has not made a party to the firm and made a party to the partner who signed the cheque. At the time of argument advocate of other party raised this issue.
    What are the options now? Please guide earliest possible.
    THANKS

  28. Jastej S (Team Vakilno1) says:

    Your advocate should search for such judgments wherein it is held that in a partnership firm or proprietorship firm, the firms are not necessary to be made a party to the proceedings u/s 138 NI Act.

  29. H.P.Singh says:

    thanks for reply. but i am hurt by the obsevation of the company secretary that we have prompted our bank to give the remark for returning the cheque as account closed as we are not willing to pay that little amount. i called company Secretary but he showed no interest. can i sue him for passing defaming remarks .

  30. Jastej S (Team Vakilno1) says:

    You must not take such remarks to your heart. Companies usually have cyclostyled formats for such kind of notices. As such also, to prove defamation, a lot of ingredients are needed to by fulfilled.

  31. Anonymous says:

    Dear Sir,

    I gave a signed blank cheque to my husband in good intention but whereas he has borrowed some money from outsiders without my knowledge to close those debts he has issued my cheque without my consent and the cheque got dishonoured. Now the drawee has give notice to me under sec 138.Now i dont have any good relation with my husband eventhough we are staying together. Kindly help me out to solve this issue.

  32. RAVISH KUMAR says:

    Dear Sir,

    Of course, it gives ample details. But, it is no where mentioned, as to whether, if the complainant is a income tax payee, whether the amount given to the accused should be mentioned in the IT returns of the accused. If it is not mandatory, any supportive judgements should have been more useful to we readers

  33. vikram says:

    Sir I had given to my company 2 lakh cheque non dated as loyality without any agreement signed . I wants to block the access of those cheque . Please suggest me a proper solution

  34. manikshah says:

    sir,
    my friend is facing a problem he had lost his wife cheque book and pass book a month since he complained the bank the next day of the loss of his cheque book which had more than three cheque leaves singed and kept and pass book and he has got the cheque book and duplicate pass book also . the day before he had problem with one of his client on some payment issue and he spoke to them and sent him but now he got a information from the bank that the lost cheque is presented with full value of the cheque duly signed by him now acctully those cheque leaves of his wife is presented only one is come . what legal action can we take kindly advice .

    regards
    manikshah

  35. Sumit Sharma says:

    Sir,
    My friend issued a check of 500000 rs. But it bounced.
    I sent noticed to him through Registered Post on his address.
    After receiving Acknowledgement of this registered post, I filed the case in court.

    But now I found few things about registered post that made me confuse:-
    Registered post was not accepted by that person at his home, he got window delivery, that’s why no signature on acknowledgement slip.

    And one more thing, post office clerk made a mistake while typing the address of that person on booking slip.

    Is it a big mistake???
    My case could be rejected due to these facts???
    Plz help………

  36. Lokesh says:

    Dear Sir ,
    i present a cheque in the bank and bank bounce this cheque
    with memo dishonower with “Bank in proper zone” sir now i want to confirm that can section 138 is lie on this or not .sir if lie so pls provide the law or any ruling in this regard.
    Sir pls revert
    Regards
    Lokesh Sharma
    08607372872

  37. what is the limitation period against the drawer of the cheque for initiating action under Section 138 NI Act1881 after expiry of 15 days notice period ?

  38. rajendra shah says:

    sir i have recd. sunnons from court u/s 138 case filed for dishnoured cheque there after i paid the value of the said cheque pls let me know the remedy for me

  39. bhanu says:

    sir, dimand notice ke kitne din bad tak court me 138 ni act ki complent file ki ja sakti he.

  40. amit says:

    sir, i had the rent dispute with our lanlotrd we vacated the premises in personal need without any fianancial settlement. now after a year we recived summone for two cases one is recovery and other is 138 using the cheque which was given as security 6 years ago. how to proceed in 138 and recovery.. please help

  41. jitender says:

    in cheque cases in personel transiction party aiso present a stamp of rs100/- in amount 249750/-rs. what the stamp are not notery or the 100/-rs stamp is fullfill the amount of rs.249750/-

    (M)9166295484

  42. Ram says:

    Sir, In case of registered society if 3 people, secretary, treasurer and president have signed a cheque and case is filed aganist the society are other office bearers liable as well ?

  43. Malik AK says:

    Pl let me know somebody mis-used by signed blank cheques and filed case against me u/s 138 NI act but I was discharged by the court, Now what are the legal resources Civil/Criminal available to me..Thanks

  44. Kevin says:

    Sir , is it necessary to mention the section 138 N I ACT, 1881 in the notice or can we simply send a notice demanding the dishonored cheque to be honored? plz answer.

  45. Edwin says:

    Sir,
    We logged complaint against dishonored cheque, against the person issued the cheque. Now Almost 2 years are getting over from the case, but case is not over.
    Filed the case in Negotiable Instrument Act 138 Criminal Case.

    The person (accused) is not appearing court but his lawyer is appearing and seeking extension in every hearing stating the reason “we want some more time for settling the amount”.
    Judge is also giving extension every time.

    Now I want some clarification.
    1. How long the person can seek extension and can give from judge.
    2. What is the outcome of the Case?
    3. Can i get the details of the case processed till now (what ground accused is asking the extension, copy). If so, how can i approach to get that copy.

    Regards
    Edwin

  46. Amit says:

    Dear Sir,
    A CMI Level company has taken a cheque of amount they offered a job to me. The cheque is taken as joining commitment and also they get signed a letter from me in their letter-head that if i do not join the company on said date they can claim the cheque and if cheque get bounced or cancelled they can take legal action. Now i don’t want to join that company. kindly advice that is it legal to take cheque from any employee without joining. How to tackle this situation. Kindly reply soon.

  47. Bhavik says:

    sir,
    we have filed 3 cases under 138 of negotiable instruments act. do we need to file civil recovery suit to get our money or the court of law will provide it under 138 of NI act?

  48. vinod says:

    U/ N.I.Act notice not served and but notice issued within 30 days. I went to when it starts the cause of action to file the complaint. please…..

  49. Euphoria says:

    Hi, In case the transaction between two parties have not materialised and no legal papers were signed between two parties for that transaction. On that basis if one party cancel the transaction and then do the stop payment of cheque basis cancelling the transaction and also notify the holder of cheque for stop payment. Can the holder of cheque deposit the cheque and go to court for dishounring the cheque?

  50. altaf says:

    sir
    i issued a cheque on dated 05-07-2012 for payment but the holder presemted the same in to bank for payment on dated 04-02-2013 it is post dated cheque this is not a case of criminal liablity how can a case was lodged against me

  51. div says:

    sir,
    I have issued a chq to my friend in my wifes a/c the chq is dishonored,he has sent a notice,now my wife is worried that she could be arrested,is this possible what is the next step from our side.
    thanks

  52. Anjan Deuri says:

    Dear sir,
    I am a banker.so I would like to asked a question regarding section 138 of NI act 1881 that, Is it mandatory to attend civil court during the disput settlement between drawer and payee? please respond my question

  53. Suhas Patil says:

    Dear Sirs,

    We have long overdue outstanding with a dealer of our goods. The party had signed an agreement and also given blank cheques for security, with written undertaking that these cheques will not be dishonored. We had sent a Regd. A/D. letter to the party requesting him to clear the dues. We had also stated in the letter that if he fails to clear the dues, we would be compelled to utilise the blank cheques. Party has not paid up. Can we utilise the cheques and sue the party in case of dishonor of it?

  54. Vivek Chheda says:

    sir. I0 am in service in shop, on 2011 I had taken loan of Rs. 50000/- from a local money lender, sir I had paid him interest of 10% monthly + deposited amount on acc. of Loan Amount in bank to his account. A blank cheque was issued in good faith to him as a security. Sir in Feb 2013 he had filled the blank cheque amounting of Rs 2,50,000/- which was then returned without giving any notice. Sir now I had a notice under section 138 at Jt. JMFC on dated 13/01/2014. request you to advise to face the same.

  55. Vivek Chheda says:

    Sir, I am in service in shop, on 2011 I had taken loan of Rs. 50000/- from a local money lender, sir I had paid him interest of 10% monthly + deposited amount on acc. of Loan Amount in bank to his account. A blank cheque was issued in good faith to him as a security. Sir in Feb 2013 he had filled the blank cheque amounting of Rs 2,50,000/- which was then returned without giving any notice. Sir now I had a notice under section 138 at Jt. JMFC on dated 13/01/2014. request you to advise to face the same.

  56. What is meaning of “within validity period” in 138 NI act. If blank cheque given in Dec-2007, accounts statement of bank shows that cheque numbers prior to and after to cheque number of bounced cheque cleared before closing account in May-2008, complainat in affidavit claims cheque was given 0n 30/05/2010. Date, name of drawer and amount is not written in handriting of accused. What is defence?

  57. shaveen says:

    Suppose an employer insists on blank cheque as a security for the job and does not provide the copy of the service agreement,nor the offer letter nor the appointment letter nor the pay slips then is it advised to provide the blank cheque or sign an agreement or provide personal guarantee with ID proofs like PAN Card copy or Voter ID copy of the Guarantor. I feel that it is an illegal practice. Which law is violated by doing so?

  58. Gowari says:

    Dear Sir,

    I have paid a investment Co 10 lacs for a ROI of 5% p.m. I have been receiving the intrest as agreed thro a stamp paper with PAN nos. TDS deducted while paying intrest. Due to some issues he has not paid the intest for the last 1 year. His advnce cheque given fir the capital amount got bonced twice. I am in Haryana and he is in MH. The guy is responding mails and SMS that once funds eceived will pay back. I want to file a legal suit under 420/138? .Kindly advice how to go about.
    Best Regards,
    Gowari.

  59. suchika says:

    Hii my friend needs to pay me 50000 bt snce 3months he is delaying , I didnt have proof DAT he took any cash bt now I hav gathered enough proof In form of msg so wat CN I do.. He is delaying date to gv money…plz suggest I,am a student..

  60. Amit Kumar Gupta says:

    I would like to know that whether the place where the cheque has got presented and bounced has the jurisdiction to entertain the complaint under 138 Negotiable Instrument Act, 1881.

  61. Ramesh says:

    Dear sir,
    I was given a cheque which has been bounced. Now i would like to file a case against him, so please help me in sending DEMAND NOTICE AND IN TAKING LIGAL ACTION AGAINST HIM.
    SO Please tell me how will it cost for me to consult a lawyer .I afford more amount ……

    Please do the needful.

    Regards,
    Ramesh

  62. amjad khan says:

    Good day,

    I have issued a cheque of 1,40,000.00 in protest and fearing physical harm.No debt or liability ,how can I defend self in case 138 NI is initiated against me.

  63. Sunny Singh says:

    Dear Vakil No 1,

    Can an unregistered association of persons file a complaint u/s 138 against a private limited company ?

  64. ramu says:

    what are the places where i can file a 138 complaint

  65. shiju says:

    what are the places where i can file a 138 complaint

  66. vasan says:

    Dear sir,

    i sel my land to Mr. Rao, at the time of registration Mr.Rao given a 2,00,000/- check. after registration he passed the time, after 5 months i presented the check, after that i surprised mr.rao given “stop payment” immediately i approached a advocate, advocate filed 2 cases againest mr. rao, one is NI act and other is civil suite.
    in NI act mr. rao got 2 years jail judgement, and other civil suit mr. rao got pay 2,00,000/- with interest judgemnet, but mr.rao’s advocate is arguing only one is valid we are ready to pay in civil judgement then NI act case will close automatically. my advocate is telling that is not correct two cases are saperate, in civil case mr. rao should pay all the amount and in NI act mr. rao should punished by the court.
    what is correct, already this case again gone to district level court, their judgement is pending.
    what is correct and what is wrong.
    please guideme

    thanking you
    vasan

  67. Kiran says:

    I am out of India and can not serve notice of demand to the drawer of the cheque, whose cheque for rent has bounced within a period of 30 days from date of return by the Bank- I shall return India after say 2 months- shall the court consider this genuine delay in making demand to the drawer,as a. Special case. PLEASE please reply urgently PLEASE, SIR

  68. Anonymous says:

    I have issued a blank cheque without mentioning amount and date and name by signing on the cheque to A but the A has given the cheque to his son-in-law of B and the cheque was filled by the son of A. This is the case filed u/Sec.138 of NIAct against my client. Actually there was no such due to amount of is due of debt to A. But the A by mis-using the blank cheque more than the amount actually due by my client. The cheque filled by the B is not the correct amount of due and my client never seen at any point of time and he never approached to B and borrowed the amount and there was no instrument to show the debt of transaction simply filled the blank cheque and filled the amount of his wish and filed Complainant U/Sec.138 of NIAct . I have not given reply to the notice given by the complainant. Please given suggestion to the case what to do as an accused. The case is at the stage of evidence of PW-1 to do the cross examine by learned counsel.

  69. dsmishra says:

    Dear Sir,
    My son-in-law has paid an amount of Rs. 1.25 lakhs to a bldr to get a room.He cancelled the booking and he was given a cheque of Rs. 25,000/ which has now bounced. He has also issued undated cheque amounting Rs.80,000/. He has asked him to present it after confirmation. Please advise,should we send a notice under 138 of INA.

  70. after bouncing the cheque you are entitle to issue notice because it is legally recoverable debt only

  71. Geevan Rode says:

    Sir in trail court the judgement was given is that I have to pay a compensation of Rs. 500000 with two month simple imprisement I have appealed before the session judge and they have released me on bail and till today I have not even deposited a single rupees of compensation. There was and argument between my advocate and the complainant advocate and the case was taken for judgement. fortunetly the complainant is murdered and he died in 2011 now the session judge is used his suo vito power and issued N.B.W warrant against me he released by paying fine of rs. 300 but he passed an order to pay the 50% amount of cheque on the next date i.e. 4-4-2014 if i failed to pay then what will be his judgement whether i have to pay the 50% amount or go top jail for two months please reply and obliged

    Yours

    Geevan rode

  72. without payee name and date issued cheqe is under 138niact

  73. kanchan says:

    i have issued 2 blank cheque to one cement company before 3 years backe , and i have done almost 1 crore business with company , now some account dispute aris and company misuse my cheque and lodge case after bounse of cheue

    so what is the scope to defend my self

  74. Mohan says:

    Sir,

    can a company file a case u/s 138 without passing a resolution at its Board Meeting. Mere authorization letter is sufficient by M.D. to one of its employee to file the case or Board resolution is Must in favour any perosn.

  75. Prateek Gupta says:

    Sir with all due respect
    my case is very old its almost 18 years old case and in that case the accused has issued several cheques which got dishonoured and the complainant filed a complaint u/s 138.But due to certain circumstances the complainant cannot record his evidence in the court because of the various ailments and diseases as the complainant is now more than 85 years old.
    Now the issue here is that the complainant due to his old age has not attended the court various times to record his evidence and now he even cannot give any evidence regarding the same even if a commission is appointed for recording his evidence as the complainant is suffring from lack of memory and other old age ailments.
    The accused has also dishonoured a cheque which he gave in the open court(i have this defence as the accused accepted his liability) and other that the accused breached the agreement.

    Sir can u please suggest me any SC judgments in favour of the complainant on these facts

  76. NI ACT 1881 WAS AMENDED IN 2002,COME INTO FORCE FROM 2003:
    1. TO IMPROVE THE COMMERCIAL TRANSACTIONS IN GOOD FAITH AND FAIR ECONOMIC TRUST, BUT NOT FOR THE PERSONAL LOANS OR WITHOUT ANY PROOF OF MONEY IN CASH BEYOND RS.20,000/-
    2. SEC 139 IS THE ONLY HARDLY TO REVERT BY PROOVING THE 138 IS NOT ATTRACTS.
    3. IF THERE IS NO ANY LEGAL LIABILITY,COMMERCIAL TRANS 138 NI CAT IS NOT ATTRACTS.
    4. BUT REALLY TRAIL COURT 139 ONLY WEAPON TO AWARD SENTENCE AND COMPENSATION, BUT SESSIONS COURT ARE APPRECIATION OF 138 AND 139.

  77. paulose says:

    I have received a cheque from the party,Submitted to the bank and the bank returned the same with reason as ” Drawer signature mismatch”.Can I register a police complaint.

  78. Tushar says:

    Hi people, i just wanted to ask do i need a counsel to send a notice to the other person under section 138 or i can directly send him the notice.

  79. ananthakumar says:

    Dear sir ,

    i am ananth from chennai , i am facing big problem , i am running fmcg business , i purchased rice from karnataka for rs 985000, and i refer my customer to my supplier , customer purchased rs 589150 , i paid rs 280000, and that customer paid rs 200000, i delayed repay the amount due to poor quality and i was stuck my collection ,that customer also delayed to repay the amount ,supplier threatening and collect the cheque of total amount 1084525 rupees , include i refered customer outstanding , now he send the advocate notice for me and my employees , and he curried 2 bills worth 11 lackhs but i am not purchsed the rice but he send the bills against my company name , kindly help me to face this issue ,

  80. Indra says:

    Dear Sir,

    If a person named A issues blank cheques to a money lender named B as a security to the amount and if those cheques are misused by filling the amounts by the lender himself and bounced in the bank of the issuer, then how is it possible that the money lender can claim the amounts from the legal heirs after the death of cheque issuer i.e.(A)by filing a civil suit. And how would it be possible to demand an amount from legal heirs by not producing any written document or valid document between A and B stating the loan amount was paid to the cheque issuer i.e.(A) in cash by money lender i.e. (B).
    Can you find any authenticity in this case. Please guide me as it will help me a lot sir.

    Thanks,

  81. Prabin Saikia says:

    Sir,
    I have given a Rs. 2 Lacs cheque to(A) for investment of a new business of me wife (B) three years back without date and name of (A),but the business not started.

    Now , the (A) produced the cheque and dishonored on 1/4/2013 with a bank slip “DORMANT” account and file a case u/s 138 & 420IPC accordiungly.
    (A)also submit a fabricated bill of sailing good of his shop against the cheque on 30/3/2013.

    My point of clarification is
    1.The cheque was of post dated& issed on 29/11/2009.
    2.Bill is false with not my signature.
    3.Also the signature found major mismatch in the cheque when I compared now with bank.
    4.My account remain DORMANT for two years.
    2.In the cheqe (A) wrote his business name with date in his own hand writing.

    Please advice to resolved the matter u/s 138 NI Act.

  82. sandeep says:

    After passing of sentence the accused died,then what remedy available to the complainant

  83. Anil says:

    No notice served u/s 138. Is the accused required to make payment of bounced cheque when he receives summons? Does it mean summons is a notice?

  84. Dilip says:

    I have filled a case to a person against dishonored of cheque at the same time the against person is also filled a case on me in other dist. for frode. Now my case in High Court in his case in D.Judge. Please advice to resolved the matter.

  85. Zaafreen says:

    Dear Sir,
    i had worked with one company few months back and have left that company as they use to alwayz delay in salaries because of which i was frustrated n left. at the time of joining they had taken a security cheque of Rs. 15, 000 from me against the laptop n other assets. Their assets are still with me . they had sent me notices several time asking for asset n security amount. after leaving job i had done a stop payment of my chq to avoid any fraud and even company had not paid my salary. They have now filed a complaint against me asking for security amount and asset. they have called me in a court after 20 days, pleas suggest me to close this matter or do the settlement. should i call n talk to them to settle it mutually rather going court n all.. please suggest… :(

  86. RAJEEV BANSAL says:

    Sir,

    How many cheques can be concidered in a singal complaint u/s. 138 NI Act.

    Thanks.

  87. kishor kumar says:

    I am running a educational trust and a got a loan of Rs. 15,00,000/- from NBFC in the name of my trust and my one cheque of Rs. 85000/- is bounced.
    1.Can nbfc file a criminal case u/s 138 of N.I.ACT.
    2.Can any nbfc finance to a turst.
    please given me answer
    thanks & regards
    kishor kumar

  88. Bijay says:

    I had filed a case under sec.138 of NI Act.I was taken in by a friend who pretended to be a good soul, he requested an amount of 13lacs which he promised to pay in 3 months.He gave me postdated chq for the same. This was between us without any contract. Now it turns out that he only had an intention to cheat me.Because his cheques bounced and he also started avoiding me. I have bank statements to this effect I filed a case under sec.138 in the court. After court/judge, verification the case was registered. Now the court has been giving only dates since the past two and half years. Till date the accused plea has not been recorded. The accused and myself are just aytending the court since the last 2 years without any results? I am shocked that after paying stamp fees and service tax and incurring lawyers fees etc, I am still where I started even after two and half years. Sorry staye of law…what do I do. My lawyer says this are court procedures…

  89. satishh says:

    Dear sir
    i have isssued cheques from perssonnnel account to my companny account for payment of legal debts to the bank. the cheques were favoured to my company account mentioning my banks name first. i e. xyz bank a/c abc company pvt ltd. when cheques were bounced back from my cc account , the bank has started 138 proceedings against me. actually i have favored my company and agreed to pay to companies account and company can initiate 138 proceedings against me but bank is taking action against me. is it legal????

  90. amit chauhan says:

    if in an appeal compromise has been done by the accused u/s 138 N.I act but later step back from the terms of the compromise .what are the remedies..?????sir plz……help

  91. A friend of mine borrowed from a woman some money(I know the woman very well.). But some years passed. One day he sent me a legal notice and it says he borrowed the money from me not her(he is saying he does not know her). After receiving the notice she deposited one of the cheque it bounced( in that legal notice the cheque no is not mentioned. Other cheque nos mentioned.She has pro note to that amount He will be accused in that case or not? She has filed the suit based on the cheque bounce. What will happen? S.P

  92. PSS says:

    I issued cheques to a supplier, the terms were 90 days, but he took undated cheques from us for security saying that he would confirm before deposit of the said cheques. after supply there was a rejection from the parts he supplied and we were not paid in turn by our customer. its been a 180 days since the supply . our supplier deposit the cheques and we could not honour them. his lawyer has sent notices to us under 138 now. we intend to clear the payments asap. meanwhile supplier has gone on offensive by writing to our banks and many other institutions about the cheque bounce and he is delibrately mailgning our name and image in every possible way.
    i would like to know if i can protect myself by filing defamation suit too ? the notice under sec 138 will be cleared as we intend to pay it within notice period.
    help would be appreciated.

  93. Hi Sir: How many cheques can i file in one complaint U/sec.138 of N.I Act.

  94. Sir,
    I have given two cheques to manufacturer for supplying of goods. But manuf. didn’t supply goods & presented the cheques & dishonured by bank. Is it applicable as N.I. ACT 138 ?

  95. Sir, I have a question. I booked aflat in a prelaunch project.More then one year gone but they could not launch it. I cancelled the booking in Jan 14. Company gave me two cheques bearing date 20-4-14 and 10-5-14. These were presented in bank on 20-6-14. On 22-6-14 bank send an sms that the payment of these cheques has been stopped by the drawer. On 24-6-14 I wrote an email to vice President of Company intimating him about the bank sms and asking the reasons within TWO DAYS why the payment of cheques is stopped and if the email remains unresponded by this time, the cheques will be represented in the bank for the payment. On 5-7-14 Cheques along with bank intimation letter were collected from the bank. Can I represent the cheques in the Bank, If yes, upto which date and if again payment is stopped, Can I serve the notice and file a complaint in the court.

  96. mayank says:

    sir ,i have issue a cheque to a online advertiser company later i dont want to perssue the advertisment so i bounced the cheque.this incident is held almost one n half year back.but i have not used their service for even one day.. plz suggest me do i stand accused in this.. relpy

  97. SIR, IF NOTICE IS SERVED TO RELATIVE WHETHER THE COMPLAINT IS MAINTAINABLE

  98. jatan says:

    Dear Sir
    i had filed a case under section 138 for cheque bouncing against one of my client. We got summenos & non-bailable waarrnat against him. We had sent all this warrrant with the help of police. But he did not appear in any hearing. So what should I do for getting my money?

  99. Ishan says:

    Dear Sir,

    I have a proprietorship firm . My employee cheated me with leaving the company without any prior notice and also absconded from the accommodation provided from the side of company. However we signed a offer letter with the employee and mentioned the clause of submitting 1 month notice in case of discontinuation of work , despite of that the employee left. Now company have issued a cheque to employee for last month , but it was made “stop payment” in order to avoid loses incurred by the employee to the company by its sudden leaving the company without any prior notice and employee joined some other organisation.
    It is very much mentioned in the offer letter and contract between the firm and employee that employee leaving without any prior notice or before notice period will be considered as a breach of contract and fraud by the employee to the company and the payments will not be released in order to repay losses which will be caused by the employees absenteeism to the company due to sudden leaving .

    The Employee has filed a notice under sec 138 for cheque not cleared in favor of Firm & Proprietor knowing that he is at the fault and done the breach of contract with ex company and has joined the new organisation without any notice.

    What being Employer we can take the steps ? And can overcome the losses occurred due to opposition?

    kindly reply with suitable answers.

    Regards
    Ishan

  100. Parneet says:

    Dear Team,

    I was going to Purchase a Plot in he name of my wife and applied for a plot Loan also, As a token money I have paid Rs 5000/- through my cheque, post that an aggrement was made and 2nd Cheque was issued to the seller of Rs 2 Lakh from my A/C. During the Technical verification of the property by the Bank, It was found that the property is not OK due to some Issues in that area, and they will not give me loan on that property. In the mean while I intimated the same to seller and requested him not to present the Cheque, and close the same deal without any further actions. I made a stop payment of the Cheque which was issued for Rs 2 lacs. Now the seller has sent me a legal notice in this case. Kindly guide what to do in this scenario.

  101. varsha modh says:

    respected sir

    138 act whoes punnishment possibale

  102. Mohan says:

    i received a summons from court and complaint U/S 138 NI Act with documents. but in the complaint the complainant says that “the accused issued and handedover the cheque to the complainant”. but i have not signed any cheque and handed over to the complainant in anywhere. and on the cheque there is not my signature. and there is returning memo with remark that “fund insufficient”.

    Actually i was the treasurer of a educational society and a founder member of the same in 2006. but in the early i resign from the society as a treasurer in 2008. but the cheque date is 2011. and there are two signatures. i am not concern with the society now and at the time of the cheque date from 2008.

    guide me what to do in the matter?

  103. Its very helofuk to me

  104. SRK says:

    Its very useful information

  105. Mihir says:

    Hi,

    Can you explain the whole process of 138? I am looking for details like, if A does not honor the cheque issued to B in one say, can B immediately file a complain or B has to present the cheque in bank one more time and then the complaint can be filed? Once the complain is filed, is there any relaxation of time before the action starts from the legal department for Mr. A to make the payment?

  106. Paresh says:

    Dear Sir,
    I had a current A/C in a Nationalized bank which was closed by be in July 2003.Of this A/C, one of my MISPLACED BLANK CHEQUE (SIGN BY ME)was used by one party in MARCH 2011. All the details filled in was in a handwriting of that party. So it was returned by my ex-bank with a comment as “Account closed”. Now that party has filed a case against me under NI 138.
    Pl. help me with your expert advise to defend this case.

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  108. SAR says:

    Dear Sir,

    Previously i was working in a company in which i use to purchase materials on behalf of company. Due some reasons company was closed, i had given him company check, for assurance he took my residence address. Now the Seller is sending me notice’s to my residence. My question, is the action taken by him against me is legal. Will i be in trouble if notice received or refused. (Once i have received and second notice after a year which was sent i was not able to receive). Request you to guide me in this regard.

  109. SAR says:

    Dear Sir,
    Previously i was working in a company in which i use to purchase materials on behalf of company. Due some reasons company was closed, i had given him company check, for assurance he took my residence address. Now the Seller is sending me notice’s to my residence. My question, is the action taken by him against me is legal. Will i be in trouble if notice received or refused. (Once i have received and second notice after a year which was sent i was not able to receive). Request you to guide me in this regard.

    Should i go for a lawyer.

  110. subramaniyan says:

    Hi i have borrowed 2lak from a known person.I have given all the payments by fund transfer, i have given him security cheque for 2 lac. After getting all the payments he simply deposited that cheque and asking for 2lakh payment.What is the legal term for this issue.

  111. komal says:

    Hi I have received a cheque which was bounced 2 nd time on 28.07.2014 but have not given any notice to drawer.can i present the same cheque once again & file a notice thereafter please clarify

  112. Anonymous says:

    Hi..My husband was doing business and he had taken loan from money lenders for his business and his mom’s new house work construction who was harrasing him., but he had repaied double the amount to the money lender, but he has no evidence for that. He had given my blank signed cheques to these lenders as security withut my knowledge which I came to know when I received my first ntice regarding cheque bounce and my husband is guilty about it..Nw I have received summons from the court for NI Act 138…can I be saved from all this?

  113. gowher says:

    sir, i was working for a company which gave me a cheque of one crore which i had to distribute among clients clients.i gave them cheques of my account but company cheque dishonerd due to which my issued cheques dishonerd. clients sent notice to me .what should i do now

  114. C.V.Lu says:

    Sir,
    I am a partner in a granite business firm. We have taken 3 lakh rupees from a third party with a condition to repay the amount after execution of the letter of credit. But the said L.C. was not executed. We have given a cheque to the amount along with an agreement.

    Further we arranged a L.C. on the name of the third party who had given money to us. We entered into an agreement regarding this L.C. and we paid 2.5 lakh rupees by way of granite material. The remaining amount has to be paid. The party took away an empty cheque with a signature of one partner instead of joint sinatures (Two). After that he filed the check to an amount of Rs.4 lakhs and filed a case in the court by filling the cheque with forged signature.

    The second party (partner is not attending and his where abouts are not known. I am regularly attending to the court. What can I do at this juncture.

    Please suggest.

    Furterh

  115. k v ramana says:

    sir,imissed blank check book with sine.some bady that checks is misuseing .now how to defend myself.that check book is current account on compy name.please help me.

  116. SHIV AHUJA says:

    We have lodged a complaint in court under section 138 bounce of cheque. But, the party is of New Delhi and I am in Punjab(Ferozepur).
    Other party has demanded from the court to transfer the case to DELHI court(as they have plead that the bank account from which cheque was issued was in Delhi branch. Is this valid and possible? Shall we have any legal authority to continue that case in our Punjab court? or our case will be transfered.

  117. Mukesh Berwa says:

    Sir,
    I filed a case against person leaving in another city but after few months i came to know that person was not living with his family and the person is cheater nobody knows his address.about 7 to 8 times bailabale warrents issued but police could not find him..
    What should i do ?

  118. ihave deposit a cheque in a bank of a party but the cheque lost by bank and they issued a photo copy of cheque but court is nt accepting in138 ni act .Any supreme court possitive rulling regarding this

  119. Anonymous says:

    SIR,
    I HAVE READ ALL YOUR COMMENTS.I HAVE ISSUED TWO CHEQUE TO A PARTY ON DT.09-JUNE-2014 I STOPPED THE PAYMENT IN BANK ON 01-JULY-2014 AND AFTERWARDS INFORMED PARTY THAT AS ALL DEALS ARE CANCELLED BY YOU SO PLEASE DONT USE THESE CHEQUES BY MAIL ON 05-AUG-2014 AS ON 09-SEP-2014 PARTY GIVES THE MAIL THAT HE HAS PRESENTED THE CHEQUES IN HIS BANK SO WHAT WILL BE THE STATUS IF THE CHEQUE GET DISHONOURED.

    PLEASE GUIDE ME THROUGH THIS

    THANKS AND REGARDS

  120. vijaykumar says:

    pls inform the timeline for filling appeal in supreme court, I had recd chq from builder and bounced, then filled 138 in bandra court but order went on builder favor, thereafter filled in bombay high court, but hight court not opened the case and said small court is correct in 2008, Now i would like to take the matter, pl inform the time line or procedure.

  121. prakash says:

    Some time in 2002 I took a personal loan form national bank. due to some unavoidable reasons the account became NPA. A cheque pledged as security the bank presented after four years for honoring which was bounced .Further a notice which was sent to me in wrong address which could not reach to me results in case filed under section 138.NIA. Further ther main point is that the total outstanding amount of loan was recovered by Naib Tahsildar in july 2007 as the bank presented the same case in Naibtahsildar court. after recovery NOC have been issued by state authority. Kindly let me know whether debt or liabilty stands. your help is urgently needed.

  122. a.k.sinha says:

    i have filed 4 cases of bounced cheques under 138 NI act at jamshedpur court.these cases were filed and court summons were issued against the accused to appear on may31 2014.the party did not appear ,but his lawyer filed a petition saying that all dues cleared and the accused should not be asked to appear before the court to which my lawyer sent a rejoinder stating that the accused plea is totally false. on14.8.2014 the cort has replied that in view of supreme cort judgement his court does not have the jurisdiction to deal with the complaint.does it mean that a fresh case has to filed at poona from where the cheque has been issued? pls elaborat the position.

  123. i have personal loan but i haven’t paid from last 6 months because i am job less , what will happen in this case

  124. The details provided by you is very useful.

  125. LNRao V says:

    Sir,
    I am the Accused counsel in 138 NI Act. Now it is coming for Trial (Partedly cross examination completed) at this stage the Complainant against filing the received document petition and re-open of Complainant X Examination. From our side file a Counters in both petitions. The Complainant filed a cheque return memo but not submitted original cheque. In this regard kindly give me a suggestion and citations, how to dismiss the Petitions without filing at the time of marking documents.

  126. antriksh says:

    sir,
    in a case, manager has issued a cheque of Rs.50000 as the proprietor has a debt of Rs.50000 from the concerned person.
    the cheque was dishonoured by the bank.
    my question rises: is the manager responsible for the payment of the cheque as the proprietor has passed away?

  127. Sir,
    I’m one of the authorised signatories in my co.A cheque was issued to our landlord for Rs.2 lacs ,on request of the Chairman cum MD of the co.There was no fund in Bank account,the cheque was issued on the verbal commitment of a party to deposit Rs.3.5 lacs through RTGS.The RTGS was not done & the cheque was dishonoured.Landlord has filed a suit,in the name of the co. in my name & in the name of other signatory.How can I legally deal with this situation?Please advice.

  128. kanchan says:

    i have issued a blank cheque as security cheque to one cement company , after long transation there is some disputes arise in accounts and i have stop business with same cement company and his balance i have paid by monthly instelment

    after few month company misuse my blank cheque which i have given him as security deposite at the time when i am taking there agency

    the said company filled up my cheque and placed in bank but the same cheque was bounced , after that company file case on me and at present i am facing trial

    kindly suggest me how i can defense my self

  129. aashish says:

    138 ni act can lawyer of appellant present settlement in an his absence
    please reply its urgent my one case is pending for judgement i wish to know that in my case i paid full ammount to applicant but in accident he lost his foot so he i unable to present in court can in 138 NI act can lawyer of appellant present settlement in an his absence

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