Cheaque related query

Querist : Anonymous (Querist) 11 September 2011 This query is : Resolved
IF A PERSON MR Z ISSUE CHEAQUE TO MR P SIGNED BY MR Z FOR DEBT TAKEN FROM MR P AND MR P GIVES THAT CHEAQUE TO MR R THIRD PARTY FOR DEBT WHICH P OWED TO MR R AND IF IT BOUNCES THEN WHETHER R CAN TAKE ACTION UNDER 138 OF NI ACT ON Z.

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prabhakar singh (Expert) 11 September 2011
If you enlarge your 'N'used in NI ACT ,it will read 'negotiable'. A ''cheque" is an negotiable instrument that is why P could pass it by endorsement to R ,though issued by Z.

Hence R can initiate proceedings against Z u/s 138 NI ACT in case cheque issued by Z bounces on presentation.

M.Sheik Mohammed Ali (Expert) 11 September 2011
yes i do agree expert query reply

NOTTAM VENKATASAMY (Expert) 11 September 2011
ONCE CHEQUE ISSUED TO WHO EVER THAT INSTRUMENT SHOULD BE PASSED UNLESS THE RECEIVER OF THE CHEQUE WILL SUE AGAINST THE ISSUED PERSON

Arun Kumar Bhagat (Expert) 11 September 2011
R can sue the Z. R has to prove that the Z has issued the cheque in discharge of subsisting liability in favour of P and the said cheque is endorsed to R. Liability has to be proved at any cost.

R.Ramachandran (Expert) 11 September 2011
First indicate whether the cheque in question is a bearer cheque or account payee cheque in favour of "P". If it was an account payee cheque, whether "P" endorsed the same in favour of "R".

Only after knowing the details, it will be possible to give an appropriate answer.

Please also indicate the date of the cheque.

Ajay Bansal (Expert) 12 September 2011
No.Not at all.

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