138 Negotiable Instrument Act
Chetan
(Querist) 14 February 2010
This query is : Resolved
In a case of 138 the accused issued the voucher to the complainant
I said here voucher because that was not the bank but it is an Credit Societies registered under the Cooperative Societies Act and and also not obtain the Banking Business Licence from RBI
In such cirumstance my line of defence is correct
Pls guide me with provision and case laws....
B K Raghavendra Rao
(Expert) 14 February 2010
Credit Co-operative Societies need not obtain licence from RBI for doing banking business. When the accused has given voucher, it is an acknowledgement of debt. For a case under Section 138 of NI Act, it must be a cheque that should have been dishonoured.
Parveen Kr. Aggarwal
(Expert) 14 February 2010
What is understood from your query is that you want to take a defence that the loan advanced by the Credit Society was not authorised because the society was not having licence of Banking business from the RBI and secondly the voucher issued to such society by the borrower towards acknowledgement of the loan amount was not proof of debt.
Both the points raised by you does not seem to be fetching any benefit for you.
First of all the Credit Co-operative Society need not obtain any licence for lending as it is governed by the State Co-operative Society which permit such lending to its members.
Secondly, even if may be violation of the directives of the RBI still the amount lent will remain a debt with the borrower and the creditor society may recover the amount. The violation of RBI and penalty thereunder is a different matter.
Regarding the 'voucher' the same is admittedly executed by the borrower acknowledging his liability and as such any cheque issued thereagainst would be deemed to have been issued against a legally enforcement debt or liability for the purposes of section 138 of the N. I. Act.
Raj Kumar Makkad
(Expert) 14 February 2010
I have also similar opinion as of parveen and Rao.
