Cheque bounce
Querist :
Anonymous
(Querist) 17 June 2011
This query is : Resolved
X prepared a cheque for Rs.2 lakh in favour of “self”, signed and put a date on it & handed it over to Z (who he owed this sum) When Z presented this cheque for encashment, the Banker refused to draw the amount and pay the same to Z with an endorsement “stop payment” .Z, after following the procedure laid down in Ss.138 to 142 N I Act. On the complaint being filed, the accused i.e. X filed an application that the complaint u/s.138 N I Act was not maintainable as the cheque was never issued in favour of the complainant in the discharge of any liability etc.
Plz explain the legal position with reference to decided cases.
Querist :
Anonymous
(Querist) 17 June 2011
X prepared a cheque for Rs.2 lakh in favour of “self”, signed and put a date on it & handed it over to Z (who he owed this sum) When Z presented this cheque for encashment, the Banker refused to draw the amount and pay the same to Z with an endorsement “stop payment” .Z, after following the procedure laid down in Ss.138 to 142 N I Act,filed a complaint under section 138 NIA. On the complaint being filed, the accused i.e. X filed an application before the trial Court that the complaint u/s.138 N I Act was not maintainable as the cheque was never issued in favour of the complainant in the discharge of any liability etc.
Plz explain the legal position with reference to decided cases.
PALNITKAR V.V.
(Expert) 17 June 2011
If the cheque was given for making payment to Z and if it gets dishonoured for the reasons given here, z can file a complaint u/s 138 he being holder in due course. It can not be readily inferred that the cheque was not given for discharge of any debt or liability.
Advocate. Arunagiri
(Expert) 17 June 2011
It is very clear that the cheque is only a self cheque. It will not at all attract S.138.
PALNITKAR V.V.
(Expert) 17 June 2011
Pls see the following links. In these cases it was held that 138 is maintenable even if the cheques were Self.
1.http://www.indiankanoon.org/doc/1680567/
2.http://www.indiankanoon.org/doc/267252/
Any citation of SC? Because that will resolve the issue.
