Sec. 138 of negotiable instruments act
Adv.Vishal Anil Vyavahare
(Querist) 11 June 2012
This query is : Resolved
Hi Sir,
My Client purchased a agricultural land.On satisfaction of that sale deed part payment made through post dated cheque. Afterwards client realised that the property, gat no. which is mentioned in sale deed is different than what my client has proposed to purchase. When we went to took possession at the field real owner who has possed that land has been restrained us, and told that land which you have purchased through sale deed is adjacent land. My client not proposed to purchase That adjacent land. So seller committed fraud with my client. After realising that fact, he conveyed to his bank and requested to STOP PAYMENT. Accrding to that Bank stopped all his transactions. And Notice regarding concerned fraud also sent to Seller. Though seller has submitted Cheque for encashment and consequently it was dishonoured due to STOP PAYMENT.
So whether My client is liable to pay that Cheque amounnt, because Seller has committed fraud. So this matter comes within the ambit of LEGAL LIABILITY according to sec. 138 Of N.I. Act ?
Please suggest and if possible suggest some Case laws.
Thanks and regards,
Adv. Vishal A. Vyavahare
Chandwad (Nashik)
Kiran Kumar
(Expert) 11 June 2012
Well he may file the complaint under S. 138 NI act, by concealing the facts from the court.
but you will get a fair opportunity to defend yourself.
you must be having some written documents executed by the seller in your favour....let some appropriate complaint be filed against the seller as well.
ajay sethi
(Expert) 11 June 2012
athough seller has committed fraud you will have to prove that there is no debt due and pyable . the fact that inspite of your refusal to buy the agricultural land he presented cheue for payment indicates that he wants to harsss you . if he issues legal notice under section 138 Ni do state all facts in reply . deny your liabilty
sumant singh
(Expert) 13 June 2012
whether at the time of dishnour of the cheque due to stop payment the account has sufficient amount to honour the cheque. if yes then only you had very good chance to defend case.
Shonee Kapoor
(Expert) 19 June 2012
You can defend the case on merits. It can not be stopped in between.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Adv.Vishal Anil Vyavahare
(Querist) 23 June 2012
Thank you all for providing such a valuable guidence regarding above mentioned query.
Thanks,
Ad. Vishal A. Vyavahare
