Legal liability under section 138 of ni act

Sambasiva Rao (Querist) 15 June 2014 This query is : Resolved
Mr.A and Mr.B are known people each other.

1. Mr.A has taken Rs.1.00 lakh from Mr.B promising that he will secure a job.

2. After some time as Mr.A could not keep up his promise, Mr.B insisted for repayment and got post dated cheque from Mr.A

3. Mr.A could not honor the cheque on due date and the same was dishonored.

4. Mr.B issued legal notice claiming the payment. Mr.A deposited Rs.35,000/- in Mr.B's account immediately after receipt of notice.

5. Mr.A filed the complaint in the court

6. Mr.A again deposited Rs.15,000 in Mr.B's account

7. Mr.A agreed before magistrate that he has received money from Mr.B but informed to the court that he has not promised to secure employment and accepted that he has issued the cheque

8. Issues for discussion are:

a) Whether the acceptance of receipt of money in the court and issue of cheque creates the liability of Mr.A legal one as defined u/s 138 of NI act.
b) Whether the repayment of money tantamount to creation of legal liability
c) Whether the payment of amount for securing job is legal
d) Whether the transaction required to be tested under section 23 of contract act
e) When there is no evidence of payment of amount and issue of except the acceptance from the accused, can we say the receipt of money creates legal liability.

please discuss

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ABDUL RAZIQUE (Expert) 16 June 2014
Mr S Rao,
You have not mentioned the issued cheque amount.
neither you mentioned any contractual agreement evidence orally it is not valid.
when you have no any evidence of payment how you claim a huge amount. it may be a RANSOM amount for any cause.

Sudhir Kumar, Advocate (Expert) 16 June 2014
He has had admitted having received payment.

Has he intimated any fictitious reason for receiving payment i.e. charity/refund of loan etc.?

why cheque was dishonoured?

what justification he has given for refund or part payment?

where the job was intended to be secured?

was the job in Govt sector?

was the job beyond qualifications?

was the job abroad?

whether the case filed is civil/criminal?

if criminal whether filed u/s 138 ony or under 420 as well?

Dr J C Vashista (Expert) 16 June 2014
Mr. Rao please submit all relevant informations before posting a query. Now reply to the questions raised by both the experts.

Devajyoti Barman (Expert) 16 June 2014
vague query......

R.K Nanda (Expert) 16 June 2014
agree with experts.

Guest (Expert) 16 June 2014
well attended

Rajendra K Goyal (Expert) 16 June 2014
Agree with the experts.

ajay sethi (Expert) 16 June 2014
you have not mentioned whether any reply was received for legal notice sent by B . has A in reply to legal notice taken the plea that there is no debt due and payable .

Sankaranarayanan (Expert) 16 June 2014
I do endorse experts

Raj Kumar Makkad (Expert) 17 June 2014
The complaint deserves to be decided on merits as there are many arguable points in it. The evidence shall also play a pivotal role in the decision.

T. Kalaiselvan, Advocate (Expert) 17 June 2014
Appears to be an academic query, hence let the author either come out the details as per the query raised by experts or approach some tutorial centre to update/enrich his academic knowledge.

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