Section 138 of n.i. act
tahesin khan
(Querist) 17 July 2012
This query is : Resolved
if any person dishonoured the cheque with bank memo as 'Dormant Account'and issued legal notice to the person who is not the owner of that account whether 138 attract in this matter
ajay sethi
(Expert) 17 July 2012
if cheque is issued from dormant account the drawer of cheque would be liable .
the bombay high court has held as under
If he closes the account before or after the issuance of the cheque because when cheque is drawn in discharge of a pecuniary liability, it can be always presumed that there exists an account in the Bank in the name of a drawer. This presumption, however, cannot be displaced by misusing cheque facility after closing the account. In such circumstances the drawer of the cheque is not only liable under Section 138 of the Negotiable Instruments Act, but also under Banking Regulation Act. At any stretch of reasoning, it cannot be said that such misuser of cheque is not liable under Section 138 of the Negotiable Instruments Act. To hold otherwise will render the whole object of the legislation infructuous.
10. In view of the above discussion, I find no reason to interfere with the judgment of the Court below. Closure of account will come under the purview of Section 138 of the Negotiable Instrument Act.
ajay sethi
(Expert) 17 July 2012
Shivendra Sansguiri vs M/S. Adineo And Another on 5 February, 1996
Equivalent citations: 1998 (2) ALD Cri 177, 1996 CriLJ 1816
