Clarifications about section 138 of ni act
Vithal. Upari
(Querist) 29 March 2014
This query is : Resolved
Dear Experts,
Please clarify my doubts about section 138 of NI Act 1881
a) A person (Complainant) who paid amount of Rs.2 lakh to another person based on mutual trust in business and in return he took cheque from him
b) The person who paid Rs.2 lakh requested many times over the phone, and through correspondence through letter or notice came back on the ground that “ address was not found” The complainant made followup after 2 years within that period person took advantage of it and he went on postponing about payment of money.
c) Now, with this respect complainant made follow up, and now receiver side advocate showing case cannot stand due to closure of the account of his client (i e. receiver). His advocate claimed why the complainant has presenting the cheque when the account has been closed. In this regard he is showing ILR 2007 KAR 2706. –K.SREEDHAR RAO.,J
d) Even during cross examination the Judge and advocate are in opinion that case cannot stand because of dismiss of earlier case laws. Even judge informed the defaulter to settle the amount, otherwise case can be filed against us 420 of IPC, and defaulter is ready to pay a settlement amount of Min Rs. 5000-30000 against Rs. 2 Lakh. Even judge also refereed to see any case laws on otherside decision i.e. “ Escaping liability merely on the ground of Closure of Accounts” to avoid payment to the party.
e) Now, complainant wants his full amount of Rs. 2 lakh but some where he is scared whether his case can stand or whether he need to go for settlement.
f) I would like to know is any other provisions u/s 138 of NI act based on this act
Person cannot escape from responsibility merely he issued a cheque and after that he cannot claimed on the ground of “CLOSURE OF ACCOUNTS”
Is there any CASELAWS/citations/ decision on the other side based on which above case facts.
Please help me out to find some solutions in this regard.
I would be more happy to receive more response with alternative solutions
ajay sethi
(Expert) 29 March 2014
complaint is maintanable . even if accused has closed accounts he continues to be liable . for case laws visit inidna knaoon .com website
Advocate Bhartesh goyal
(Expert) 29 March 2014
As per latest judgment of Delhi High Court,cheque returns due to any reason attracts the sec 138 of N.I.Act.
V R SHROFF
(Expert) 29 March 2014
it attracts 138 ni
Guest
(Expert) 30 March 2014
Well advised.
Advocate. Arunagiri
(Expert) 30 March 2014
If the account is closed, if the cheque returns on the this ground, it is deemed as "cheque returned for insufficient funds".
T. Kalaiselvan, Advocate
(Expert) 31 March 2014
The complaint is very well maintainable though the reason stated therein the return memo that account closed, it still attracts the provision of law meant for it.
Vithal. Upari
(Querist) 31 March 2014
Dear Experts,
Thanks for your quick response i am highly obliged. Thanks for clearing my doubts.
Thank you very much.
Regards
Vithal N Upari
ajay sethi
(Expert) 31 March 2014
thanks for your appreciation
