N.MOHAN 24 February 2018

Sec 138

I have taken a personal loan from Kotak in 2008 and the reapymen mode was ECS of 27320 pm. From April 2009 onwards, I became defaulter due to business loss. After long time in 2015 Nov., they filed a EP with the Arbitration Award, which I am not at all aware. But, I fought the case and proved the arbitration was not at all informed me and awarded as exparti & case was dismissed in 2016. Yesterday I received a lawyer notice from Bangalore that my PNB cheque dt. 16/1/2018 was presented and returned as account closed and it is a criminal offence under sec 138. They have collected 4 undated cheques at the time of documentation in 2008 as security. They used one of the cheque now. I closed the account in 2009 itself and the bank also knows by return of ECS. Now wontonly harassing me because lost the EP case, they acted now without any ethics. How to deal this? Is it the right way they have done after 9 years. Kindly help me to come out of this

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Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 24 February 2018

Section 118 (b) of the Negotiable Instruments Act, 1881 says thus

118. Presumptions as to negotiable instruments Until the contrary is proved, the following presumption shall be made:-

(a) of consideration-that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, endorsed, negotiated or transferred, was accepted, endorsed, negotiated or transferred for consideration;

(b) as to date-that every negotiable instrument bearing a date was made or drawn on such date;

You may be able to prove the date on which you delivered cheque to the Party based on its serial No, and subsequent cheques issued by you to the same party or other parties. If you are able to prove thus that you had handed over the cheque leaves more than 3 months (the validity period of a cheque) ago you cannot be charged under Section 138.