Blank cheque used for wrong purpose and without any agreement or intimation
basant
(Querist) 22 March 2012
This query is : Resolved
i got employement in a limited company in india.
the conditions of getting employemeny included a blank cheque to be issued which was to be used only if i break 2 year bond and the damages can be claimed by company was upto one years salary. they took the blank cheque and gave me recieving of it before apoointment letter was issued.
the appointment letter has no codndition for cheque to be issues. there is service adherence bond which has mentioned that the cheque will be used only if there are losses suffered by the company due to wrongdoings or breaking of bond.
company is liable to pay 16.80 lacs per annum as my salary and only about 3.24 lacs was performance based as per salary breakup given.
first months things were bad..company had no infrastructure to serve customers..we still got enough collection and after a lot of arguements they paid salary on next month on 15th. i joined(forced to accept) on october 24th 2011.(though they made me work for 12 days for free. i got official email of welcome and my email id created on 12 th october).
they did not pay for 24th oct-31st october.. november salary they paid on dec 15th after lot of email and verbal exchanges.
they did not pay december salary and refused to pay even after committing on email that it will be paid by 15th january.
i had emailed to them that if they dont pay by 14th..i wont work anymore for them... i waited till 24th and kept on looking for new job...on 25th they came to know that i have an offer from other company and am about to continue working for them.
they shut down my company official email id and there is communication from the company..so it obvious they dont want me to continue anymore.. in the meantime since they refused to pay salaries i stopped the cheque on 11th january.
now on 19th february they represented the cheque without any intimation to be and the cheque ws returned as stopped payment was issued.
now the company has sent me a notice of almost one years salary and also communicated that this returned cheque will be tried under NI act section 138.
they have metioned in the notice that i agreed to pay them the said amount of 16,33,180 against the damages and i issues them cheque on 9th february.
now my questions:
1. how can compay put an amount on my cheque without any agreement or my approval or any claim there of or therein.
2.company did not pay my dues and i emailed them that i will not work for them. they agree to pay but dont pay. once i ahve quit as they have not honoured their agreement..how can there be any agreement at all left to honour from my side.
3.when there is no contract valid..how could they dare and put the cheque and send me a notice that i agreed and its not honoured.
4.how can this be under NI act of 138 when there is no agreement, no debt ..no obligation to pay any amount untill proven otherwise.
5. can i file criminal case against company for cheating. and also i have to claim my dues from them.
6.since i did not resign..they stopped my id without intimation...and the they did not communicate so how can they claim that i did not honour the service bond etc....
kindly help or advise.
ajay sethi
(Expert) 22 March 2012
basant
1) you have stated that it was a condition of employment that blank cheque was to be given .
2) company has given writing that blank cheque was received .
3) cheques could be used only if service bond ws broken and loss caused to company
4)since company failed to pay salaries you have left the company after prior intimation .
5) from the facts stated by you it appears that company has missued the cheques .
6) please contact a local lawyer and reply to legal notice .
7) deny that there is debt due and payable no authority given to fill in cheques .
8) material alteration in cheques have been done and blanks filled in . no loss is caused to the company
basant
(Querist) 22 March 2012
thanks. i am getting that reply done by a lawyer.i have a blood relative who is retired IPS officer in delhi. i am working on it. but its a big botheration.
anyways, how can their lawyer send me a notice on false grounds... notice cleary states that i have broken bond and left and did dhokadhadi??i have never agreed to pay any amount as claimed in the notice.i never filled the amount and gave to them..
how can they even state that if i dont pay this will be tried under section 138. where is the question of section 138 when there is no debt, no loss occurred or proven....
my point is can they try and file a case against sectione 138 of NI???all the presumptions of case are wrong..they have cheated on me..havent paid dues..made my life and career miserable.
this has not happened only with me..they have done it with another collegue of mine who joined with me and he sent quit email before i did..we both were called and promised to pay and they still did not pay. they have sent same notice to the other collegue as well..
why should court enetrtain their case when it has no validity.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 22 March 2012
Whatever you say is your story , in court you have to prove by solid evidence.
Once NI 138 case is filed you have to appear and defend it. There are many other technical routes to come out of it.
Police officers retired or not will be of little help in such matters.
basant
(Querist) 22 March 2012
Thanks you have been very kind. You are assuming things. I am clear that there no case of 138 here. The company will need to prove that how have I broken the bond and what losses have I caused. There is no story of any side when u try and get legal help. For me its my first time in 12 years of my working career. I have worked with large companies like Tata and I have held respectable positions. I was GM in sales and mktg with no signing authority anywhere. Even agreements or otherwise. Every decision was made by directors and every agreement. Even to pick order was done by directors. Such was my fate in this company. I have lost time ,money and almost ruined my career.the only mistake I made was that under pressure I gave a blank cheque since they confused with lots of things. Appointment letter sates something. The bond letter states something else. They say something do something else. U can't be rude when u see such that. And by IPS what I wanted to say was that I have a guiding force with me unlike poor other friends and collegues. I haven't done anything wrong so what is there for me to prove with solid defence??? Its the company which will need to prove that.. I broke bond... I caused 8 loss. I filled the cheque. I agreed to pay the amount as mentioned in their notice. Its funny looks like salon ki baap ki marji hai since they are loaded with cash and lawyers(like u probably). No ethics.. No culture.. Whole idea is to give a damn to law and people somehow carry on with their business. I am not going to spare them even if I have to burn any amount of money or time. I have resoources and all famile supporting. So I am not worried. I wanted help and advise and not remarks from eminent poeple like you. Thanks again but be a bit human.... Someone and his family is being harrassed to press for his right to live. I will fight till the end...
ajay sethi
(Expert) 22 March 2012
basant
i have advised you that you have a good case . but unfortunately when you issued a blank cheque you have fallen into the company trap .
once cheque has bounced and legal notice issued and you did not pay offece is committed .
if company files case you have to defend it . the company will have to prove that there is debt due and paybale and it falls within ambit of section 138 NI .
best of luck .
basant
(Querist) 22 March 2012
Thanks Ajay. I understand that company will file the case. I understand that it may fall under 138 as the cheque has been deemed to be issued by issuer till proven otherwise that what were the premise and pretext of the things.I gave blank cheque and fell to trap. But I never agreed for any settlement as they claimed and I never filled any amount or name or gave them explicit written authority to use it without my consent or notice. I will keep you and forum posted and would seek human help. Thanks a lot.
Sankaranarayanan
(Expert) 22 March 2012
You better to seek local lawyer and give reply all the best
V R SHROFF
(Expert) 25 March 2012
Basant should have issued notice to Co. to return his cheques, and do not deposit, as Co. failed to pay his salary, and Basant left job, due to Co. fault ,
Even now, filling cheque with any amount without consent of Drawer, is material alteration, and as content of cheque was not with consent, is a very good defense.
they shut down Basant's company official email id and there is communication from the company. So he wasc no more in co. services, at co. discretion.
If you receive 138 ni notice, you reply, that service contract was terminated by you, shutting down my e mail, and you failed to pay me my salary intimer, and violated terms of employment. So you are not liable to pay you anything. So stop payment was instructed by you to bank, and also communicated to you verbally to return my cheque, and pay my salary due till date.
You neglected to return my cheque, and trying to blackmail me. Co. did not suffer any loss, it is Basant, who suffered loss due to your Financially sick co.
As you have appointed me with malafide intention for cheating me in mind from the beginning only. , liable for 420 also.
Try get list of other employees , that left jobs, and what happened to them ??
basant
(Querist) 25 March 2012
Thanks Mr Shroff. Two had joined along with me. One of them having salary as 3 lac left after first month with similar conditions... They just sent a communication that you will have to pay 2 lacs or something like through email... As per that guy he has not received any notice from lawyer..he may not have taken the notice from company. Second staff having salary as 5 lacs received similar notice from the companys deputed lawyer... We all three joined together as these were with me in previous company. I have sent reply through the lawyer stating to the lawyer that your clinet has concealed all the facts and have done cheating with me and also stated all the facts of employement violated by his client. lawyer will get reply soon as he will have to choose not to continue and company may go to new or they may withdraw.. But since they are cheats I am doubtful they will withdraw but I will teach them a lesson or two. Though I may get harassed but in future they may not be able to do it to other such staff. In fact there is another gentleman who's salary was not paid and he is ready to come if required. thanks once again... I will keep you all posted as things happen.
Guest
(Expert) 25 March 2012
Dear Basant,
Having confidence is a great thing, but showing over-confidence by merely assuming things by closing eyes on realities in legal issues sometimes harms the interest of a person very badly.
So, my advice, not to depend much upon your presumption, like, "lawyer will get reply soon as he will have to choose not to continue and company may go to new or they may withdraw." Any lawyer, if gets paid for his services by the company would definitely work on the direction and in the interest of the company only, not taking care of whatever reply he receives for his notice.
Nothing like that, if the company withdraws. BUT on your part, you must keep fully prepared to face the eventualities, if any happens. I am sure the company would have lured you people on attractive salary, but the trick of grabbing blank cheques of Rs. 2 Lakhs from each candidate was naive on their part. Naturally, the company would have more tricks in their mind to tackle such issues and you will naturally have to face sec.138 case, if cheque is dishonoured. Since the company believes in cheating, the management, even through your own colleagues, must have clandestinely calculated the loss amount even more than the amount of 2 lakhs against you to prove.
Please be aware, cheque dishonour case is not a labour & service law related case, as you seem to have assumed. It is a criminal case.
So, don't take the things lightly. Better make a good defence strategy rather than assuming things.
