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Ni act & forgery

(Querist) 29 September 2011 This query is : Resolved 
There was an agreement between A and B.
A has to executed some wooden work for B for 10 lakhs.

B gave Advance of 5 lakhs along with a Blank signed Cheque for the remaining 5 lakhs with a written condition that after completion of work B has to fill the Cheque then only A has to encash the cheque.

But on completion of work, A with out knowledge of B and filling of the Cheque by B as a condition laid down in the agreement, A filled and presented the Cheque in the Bank which was bounced. A filed a case under NI Act against B after following the procedure.

The condition of B is:: that B must fill up the Cheque after that only A has to present and encash the cheque amount. Here A did not fulfill the condition of B.

What is the remedy for B?

M.Sheik Mohammed Ali (Expert) 29 September 2011
above mentioned that condition mentioned in the agreement or not? if not B will punished, give me full details.
R.Ramachandran (Expert) 29 September 2011
The cheque got bounced for what reason?
R.Ramachandran (Expert) 29 September 2011
One more query, what was the reply given by B to the legal notice u/s. 138 N.I. Act received from "A"?
Sankaranarayanan (Expert) 29 September 2011
yes My friend asked well two questions. If they clause of cheque should be used only after the work completion been mentioned in the agreement Clearly .
What reason the b presented the cheque on bank.
what basis the notice been served.
If the agreement is clearly mentioned then you can reply the notice with your proof and further file a suit.
we need more details about your prob.
Ganesh Chavan (Expert) 29 September 2011
I Agree with Experts.
surendrababu (Querist) 29 September 2011
kindly read out my case again I have given in detail

thank you my expert friends
ajay sethi (Expert) 29 September 2011
do you have nay proof that blank signed cheque has been given ?

that amount and date filled in by A .

bombay high cout has held that blank cheque is no cheque . if amount and date filled in by A then it amounts to material lateration of cheque .
a blank cheque is no cheque

B has to in reply to legal notice plead that blank cheque has been issued . the amounts , date , name of A has been filled in by A.
Arun Kumar Bhagat (Expert) 09 October 2011
I shall request Mr.Sethi to give me citation of Bombay High Court judgement. I have not come across any such judgement.


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