Cheque bounce matter
CHANDRA MOULI
(Querist) 12 January 2011
This query is : Resolved
About 2 yrs ago, a news was that the Appex Court pronounced a judgement declaring that a cheque given as security by a 3rd person and if it is depositted in a bank and bounced, it can not be treated as an offence and tried. Will u please let me know the case numer and the text of that judgment...?
We have a case where in A gave loan to B.
B gave a cheque to A. C is a friend of B.
Hence C also gave a cheque to A as security. A depositted the cheque of C in a bank and it is bounced and case filed in a court. Trial is on. Now we want to argue that it being as security, it can not be tried interms of the said appex decision. Can we do so...?
Amit Minocha
(Expert) 12 January 2011
acheque in discharge of liability of third party is a negotiable isntrument and its return for reaspons under section 138 also leads to an offence
DEFENSE ADVOCATE.-firmaction@g
(Expert) 12 January 2011
Please visit forum section where there are number of citations in this matter by Bombay HC and SC. Security cheque is no offense but this fact you have to prove in the court.
Even otherwise the complainant has to prove legal liability .
Advocate. Arunagiri
(Expert) 12 January 2011
Dont rely on the news, get the order copy and post it hear.
If the cheque was issued before the date of the loan, no offense.
If the cheque was issued after the date of the loan, it is an offense.
In your case it is an offense.
G. ARAVINTHAN
(Expert) 18 January 2011
Get opinion from advocate... news may contain false data
