account closed/sec 138 NI Act
vinod bansal
(Querist) 09 July 2009
This query is : Resolved
Respected Members
My account is closed since 2003 but now my partner by mis-using my blank cheques which were in his possession has filed a crl complaint after filling the same himself us 138 of NI Act in this case bank has dishonourned the cheque mentioning that "Account closed" i want to know whether it is covered by NI Act as i have read a recent news/judgment of supreme court last month in news paper that provisions of section 138 are very limited and its covers only two situation when fund is insufficient in a/c of accused and when he exceed his arrangement in bank a/c.
K.C.Suresh
(Expert) 10 July 2009
Any further clue to reach the citation.
Kiran Kumar
(Expert) 10 July 2009
yes Vinod it was in newspaper that provisions of S. 138 NI are limited to cases where is the case of insufficient funds....probably it was said to be SC judgment.
but m yet to recieve this judgment.
but in ur case, the legally enforceable debt has also to be proved....how he will prove any such existance of debt???
u may give more facts so that some relevant judgment can be found.
adv. rajeev ( rajoo )
(Expert) 10 July 2009
First u issue a notice to your partner for misusing the cheques. U can also file private complaint against your partner for misusing the cheques. You have told you have closed your a/c in the 2003.
Account closed also comes u/s 138 and it depends on the complaint averments.
Jayashree Hariharan
(Expert) 10 July 2009
Existence of debt is a necessary element of S138. As said by the experts, you can intimate the loss of cheques, or something like that to your bank. In case, your partner has written the cheques dates as beyond 2003, you don't have to worry.
Best wishes.
