ni act138
Nand kishore
(Querist) 07 August 2010
This query is : Resolved
is a cheque given as security in process of sale & purchase of vehicle ,given by seller on condition that it will be returned after transfer of vehicle ,can be used in other matter to prove the seller guilty under n i act
S. Bharath
(Expert) 07 August 2010
Yes, if the transfer does not take place.
Raj Kumar Makkad
(Expert) 07 August 2010
If the agreement exists in writing in support of your version then such company cannot miuse your cheque and no offense is made out even if such cheque is bounced in another matter but it no such writing is available with you then it is difficult to believe upon your oral version and thus bounced cheque shall be believed as duly issued by you against discharge of your lawful liabilities.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 08 August 2010
The basic requirement of NI 138 is that there should legal dues or liability , if not no action can be initiated.
Vinod Singh Tomar
(Expert) 08 August 2010
I concur with the views expressed by Mr. Kakkad. You may refer a recent case Pioneer Drip Systems Pvt. Ltd. Hyderabad Vs Jain Irrigation Systems Ltd. Jalgaon reported in 2010(2) CCC 351 (Bom. Remedy is only civil remedy because disputed cheque becomes without consideration even after return of the vehicle.
Nand kishore
(Querist) 13 August 2010
sir,i have sold the vehicle for rs. 2,90,000/ got rs. 2,30,000/ as ad.payment and rest adue will be paid after handing over the transfer papers. purchaser asked for a cheque of rs. 2,30,000/ as security annd promised to return it along with due amount, iagreed and gave him a cheque as security and for all this a written agriment was made in front of three winesses mentioning all this . after some time i gave all necessary documents regarding transfer of vehicle and purchaser applied it in R.T,O Ofiice for transfer in his name. after getting summon by court iknew that he fild a suit against me showing me deffaulter of some coal payments by the same cheque (given as security) ander process of trial he dint proved the dues of coal on me and also accepts the deal of purchase of vehicle but after all these hearings the magistrate charsed me guilty u/s 138. is there any rule or code which can save me ?
