seema sharma ( manager) 14 June 2011
sir, an nbfc issues a loan to its member upon surity of three other persons as jointly and severally. one surity issues a cheque for loan payment in whole. that cheque dishonoured by bank due to insufficient funds. what are the legal remedies in this case . is it comes under s.138 of NI act as that surity is not main loanee or he is?
pls guide.
any judgement in this regard is helpful,
thanx in advance
pawan kumar (-) 14 June 2011
PL .GUIDE CHEQUE ISSUED FVG. SELF ISSUED TO DISCHARGE PAYMENT IS VALID IN COURT IN CASE FILED WHERE RECEIPENT HAS TOLD THAT NO PAYMENT WAS MADE PL GUIDE
Shantanu Rastogi (ADVOCATE) 08 July 2011
Even if the Surety is not the main lonee or the borrower, the act of dishonour of cheque issued on behalf of the main borrower shall attract the provisions of the NI Act. Surety has offered himself for the main person, the borrower in this case. In the event of the non performance of the main borrower, the surety is liable to the extent of the surety advanced/offered.
Please refer to
(2010) 12 SCC 146] P. J. AGRO TECH. LTD. & ORS. VERSUS WATER BASE LTD.
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