NI Act 138
Dr.Gaurang N. Gandhi
(Querist) 08 May 2010
This query is : Resolved
my client is a transport owner.
some person had stoled one truck with loaded goods total worth Rs.11,32,000/-
He was arrested by Police. then after one of his friend had given a cheque worth rs 7,00,000/- regarding surety against the said theft. after passing of time the transporter had deposited the said cheque in bank.
the cheque was bounced with insufficient balance.
can we proceed under NI Act?
We have already issued a statutory notice to the guarantor....
what should be next?
niranjan
(Expert) 08 May 2010
cheque given as surety is not within purview of NI Act.
Parveen Kr. Aggarwal
(Expert) 09 May 2010
In the statutory notice whether you have mentioned the liability against whom the cheque is delivered to you?
The liability can be said to be legally enforceable and as such you can proceed under the NI Act. Otherwise also, there is presumption of issuance of cheque against legally enforceable liability under section 139 and 118(a) of the Act.
