Hand loan and financial transactions having same meaning or
vinod bansal
(Querist) 10 June 2010
This query is : Resolved
R/Experts
I am representing accused in a 138 NI Act Complaint case,in complaint complainant case was that accused issued cheque in financial transactions in between accused and complainant.Now in cross he stated that cheque was given against liability of hand loan which he give to accused.I want to know whether Hand loan/friendly loan and financial transactions in between two persons is same thing.Kindly help.Thanx
A V Vishal
(Expert) 11 June 2010
Financial transaction is a wider connotation and hand loan constitutes a part of financial transaction. The test here is not whether it is a handloan or a financial transaction but the legality of enforcing the debt which is the crux of S.138
adv. rajeev ( rajoo )
(Expert) 11 June 2010
Hand loan is entirely different from financial transaction.
Hand loan is interest free, some times it amounts to friendly loan.
Financial transaction means it is related to finance i.e., obtaining a loan from financial institution, banks etc., some times nature will be different.
Burden lies on the complaint to prove that on the date of advancing the hand loan he had a capacity to advance the loan and that much of amount he had.
G. ARAVINTHAN
(Expert) 11 June 2010
All Hand loan are financial transaction but all financial transactions are not hand loans
DEFENSE ADVOCATE.-firmaction@g
(Expert) 11 June 2010
You have to prove no money was given. Hand loan and financial transection are finer points which has no relevance at trial stage.
