138 NIA-Inter Corporate Deposits
Legal_Query
(Querist) 15 January 2011
This query is : Resolved
res.all,
my client received financial aid through inter corporate deposit (ICD) from MP State Industrial Development Corporation and gave cheques against the said aid. can MPSIDC in its own capacity sue my client under 138 NIA. any defense/ case law in my client's favour.
rgds
R.Ramachandran
(Expert) 15 January 2011
Yes. MPSIDC is a legal entity and it can definitely sue. If your client had given the cheque in part / whole discharge of the ICD, and if the cheque got bounced due to insufficiency of funds, definitely a case u/s. 138 N.I. Act can be filed by MPSIDC.
Raj Kumar Makkad
(Expert) 15 January 2011
Yes. MPSIDC cannot be cheated or cheque given to it cannot be got bounced because it is a corporation. It has also got legal right at least at par with a common man of this country.
Advocate. Arunagiri
(Expert) 15 January 2011
You have to face the case. The MPSIDC is having all such rights and powers to initiate cheque bounce case.
Amit Minocha
(Expert) 15 January 2011
bouncing of cheque against legal debt is an offence, you are liable for prosecution.
Advocate Bhartesh goyal
(Expert) 16 January 2011
No defence,Your client had issued the cheques against the legally enforceable debt so he is liable to be prosecuted.
Ahmed Daud Girach
(Expert) 16 January 2011
Legally enforceable debt means in your case the debt which is legally due and debt that is to be recovered following due procedure of Law.1.when the amount was due?take accouunts.2.cheque was given towards security signed but blank(as usually happens)3.What amount was due and what amount was written in the cheque?4.Who has filed the complaints is he duly authorised?I mean if Manager is authorised then his clerk or Asst Manager can not sign complaint.5.Which resolution allows recovery from your case?6.Companys resolution regarding recovery and see whether it is verbatim followed.Such defence may be taken reading ingradients of 138.All technical defence including from notice also may be taken.
