138 N.I.Act / Foriegn Company
Legal_Query
(Querist) 26 November 2008
This query is : Resolved
Dear Sir,
A foriegn company, not having office in India issued a cheque to an Indian Company, which bounced due to the reason account closed, can the company be prosecuted under the N.I.Act. What are other remedies available.
Thnks & Rgds
Pawan Mittal
(Expert) 27 November 2008
The foriegn company can not be prosecuted under the N.I.Act in India, because cause of action not arise in India. You have have to file suit at foriegn as per their law.
Adv.Shine Thomas
(Expert) 27 November 2008
U/s 137-the law of any foreign country regarding promissory notes,bill of exchange and cheques shall be presumed to be the same as that of India,unless and until the contrary is proved.
The cause of action arises at the place where the cheque is issued or the place where the cheque is presented for collection or the place where the cheque is dishonoured.So I think,it comes under the provisions of NI Act.
