points to defend against sec 138 of negotiable instrument act
Sachin Gokani
(Querist) 20 May 2011
This query is : Resolved
hi one of my friend has taken as loan in cash of rs.100000 @10% per month against cheques of rs 50000 of two cheque and he paid 60000 as interest at 10000 each moth and now cheque has bounce due to insufficient balance how can i defend my client who written the cheque and what is penalty and prosecution against him advise me
my email id is sachin2502@gmail.com
thanks in advance
sachin gokani
PARTHA P BORBORA
(Expert) 20 May 2011
.If there is no proof that the cheque was given as seceurity against a loan, you have a little hope. The maximum period of imprisonment is three years with fine, which may extend to twice of the cheque amount.
M/s. Y-not legal services
(Expert) 22 May 2011
Mr.borbora stated correctly about the penalitys.. Your friend may arrange any settlements Better than prosecute the case. Cos you are admitting that your friend paid 60k only thats also as interest.
M/s. Y-not legal services
(Expert) 22 May 2011
And if you have any proof for that subject cheques are given as surety only not for disclose any liability mean you can contest your case. Otherwise no way to escape from the penality..
