Do PDC's fall under 138 NIA or not ??
Querist :
Anonymous
(Querist) 03 January 2011
This query is : Resolved
I have read somewhere that PDC's,if dishonored, do not fall under 138 NIA.
Is it right?
I have given blank cheques to someone 6 months back.He may fill up these cheques any time and get bounced--how can I prove that these cheques were security cheques??
Are blank cheques considered PDC's or not ?
H.M.Patnaik
(Expert) 03 January 2011
It seems from your query that even though the cheque is not filled up , it is signed and dated. In that case , the same can be presented within a period of six month from the date of issue,so youhave to keep an watch over it's presentment till that date and if it is at all presented take steps either to honour it or issue instruction to your bankers to stop payment citing reasonable grounds .
H.M.Patnaik
(Expert) 03 January 2011
Furthur to prove this cheque was lodged as a security against any probable default in future, you have to either keep a documentary communiation from the other party to that effect or a written acknowledgementindicating the purpose for which such instruments were lodged.
Besides, when blank cheques are presented after duly being filled up under the drawer's signature,, they became fullfledged negotiable instruments and any default in honouring the same would attract prosecution under N.I. Act unless it is proved that the has beenstolen or obtainedunder coercion etc..
adv. rajeev ( rajoo )
(Expert) 03 January 2011
Even blank cheques issued attracts NI Act. Write a regd letter to the person to whom you have issued a cheque that it is issued towards security but not to clear the debt and also do not present the bank. You have to inform the same to the bank. You have to do it immediately.
Advocate Bhartesh goyal
(Expert) 03 January 2011
Your query Is incomplete,it has not been mentioned that why you issued the cheque?Any way follow the advice given by adv. rajeev.
N.K.Assumi
(Expert) 03 January 2011
Filling up a blank cheque by itself can not tantamount to forgery. But if the cheque which is a property is misused for other purpose than for which it was issued a case of 406 IPC may lie. So you have to know for what purpose you issued the blank cheque and if the same was misappropriated you can file criminal complaint to the police.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 03 January 2011
It is easier said than in practice for criminal action. Why in the first place blank cheques were given.
Raj Kumar Makkad
(Expert) 03 January 2011
There is no scope for exoneration in criminal case under section 138 NI Act if blank cheques issues against security deposit get bounced. Security means to present those cheques if the issuer makes any default in payment/liability so there is no illegality to present such cheque in the bank by its due holder and to initiate criminal action under section 138 NI act.
Ajay Bansal
(Expert) 03 January 2011
Unless requirement of section 139 N.I. act is not compleated,you can not be prosecited.
malipeddi jaggarao
(Expert) 03 January 2011
I fully agree with Expert Mr.Raj kumar Makkad. In a Blank PDC, if the date is filled in later, it is not a blank post dated cheque. In one way you have given these cheques to somebody as security guaranteeing discharge of liability and another way you wish to escape from the provisions of NI Act. Please note that under Negotiable Instrument Act, consideration is presumed to be passed on unless contrary is proved.
