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Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     13 February 2010

Dishonoured Cheque Complaint cannot be filed by Heir : HC

Dear All,
 

This was reported in  "Times of India,  dated 13 February'2010, Mumbai edition, page 10".
(read article, as reproduced below)

 

MY PERCEPTIONS :

1.   The judgement clearly points out that in Law, there is nothing  BY DEFAULT.   To partake the benefits of  "Legal Rights", a legal document delegating power SHOULD be available.  OTHERWISE, there is nothing called as  automatically inheirting rights & properties of deceased.
This also applies to Transfer of Movable & immovable properties of all kinds.
 

2.  Legal Heir or Legal Representative (LR), is dependant on the power delegated by the deceased. AND NOT BY DEFAULT OR SAY AUTOMATICALLY.
 

3.  Power cannot be delegated by oral words, before witnesses or without witnesses.
 

4.  For Legal purposes,  Power can be delegated ONLY by writing by way of  succession certificate, letters of administration, probate, registered will, registered irrevocable POA, registered MOU, arbitration and others.
 

5.  NON-registered documents like Will, POA, MOU etc.... have no legal standing in a court of law.
 

6.  There are many people who prefer to go to another type of court (i.e. like the  "D" company) where everything is accepted, even registered or unregistered and even no documents or nothing at all.

 

Keep Smiling .... Hemant Agarwal

 


Dud cheque plaint cannot be lodged by legal heir: HC
reported in  "Times of India,  dated 13 February'2010, Mumbai edition, page 10"

 

Mumbai:  A legal heir cannot file a complaint over a b o u n c e d cheque unless he is authorised to do so by his deceased relative, the Bombay High Court has ruled in an important order.

 

   “Only a person who is authorised by succession certificate, letters of administration or probate granted by the court, is entitled to call upon the drawer to pay the amount of dishonoured cheque, by issuing notice,’’ said Justice B R Borkar. The court quashed a process issued under the Negotiable Instruments Act against Ahmednagar resident Vishnupant Khaire.

 

   Khaire had issued a cheque of Rs 3 lakh to one Balbhir Madan. Madan died in an accident in 2007. A year later his son Kailash presented the cheque before the bank. When it bounced he lodged a cheque bouncing case against Khaire.

 

   “By demise of payee itself, it cannot be said that any of the heirs or legatees get the right to lodge a complaint (for a bounced cheque) as if he automatically enters into the shoes of the deceased payee,’’ said the judge.

 

   The court said that in the present case, Kailash did not furnish either the letters of administration, or probate or succession certificate.

 

   “He has no authority to demand money and lodge complaint as he cannot give valid discharge for payment made to him,’’ the court said.
 



Learning

 1 Replies

B K Raghavendra Rao (Senior Advocate)     13 February 2010

Only the payee or the holder of the cheque in due course can file complaint and pursue caseunder Section 138 of NI Act.  If the cheque is  a self-drawn or a blank cheque and falls into the hands of future holder for discharge of legal liability only then the complaint is valid in the eyes of law. 

 

No estate or assets of deceased passes on to his heirs automatically.


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