N.I. Act Sec 138

Golok Ranjan Tripathy (Querist) 19 January 2010 This query is : Resolved
We have given blank signed cheques to a company to be used against specific bills. The company used one such cheque for full and final settlement done arbitrarily without our knowledge.we came to know about the full and final settlement from their monthly account statement. They gave us thirty days time to file objections, which we did as our claims with the company was yet to be settled. Even before they drafted this account statement sent to us and the expiry of the time period given in it, they used one of our blank cheques for the amount of the arbitrarily reached at settlement without any information to us. The cheque got bounced. Is section 138 maintainable? what are the remedies for us?

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Guest (Expert) 19 January 2010
Their is rebuttable presumption that cheque is issued for consideration.If you are able to prove signed cheque was not meant for consideration in that scenario section 138 is not maintainable.

B K Raghavendra Rao (Expert) 19 January 2010

Prima facie, Section 138 is attracted. After giving blank signed cheques, you cannot defend your case easily.

You would succeed only if you have sufficient documentary evidence to prove that cheques were presented prematurely when you not legally liable to settle the account. Otherwise, you have no remedy.

Guest (Expert) 19 January 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.09325226691, 09271971251

e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com

REGARDING BLANK SIGNED CHEQUES AND N.I..ACT.SECTION 138 PLEASE NOTE THAT.
1.COMPLAINENT CAN FILE CASE UNDER SECTION 138 OF N.I.ACT.
2.YOU CAN TAKE DEFENCE THAT BLANK CHEQUES WERE TAKEN IN ADVANCE AND WITHOUT INTIMATION WERE SENT FOR CLEARING .
IN CASE YOU NEED ANY FURTHER HELP YOU MAY WRITE AND SEND DETAILS OR CALL.WILL HELP YOU.
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE

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