cheque dishonour with remarks a/c close
KAPIL
(Querist) 22 April 2011
This query is : Resolved
Sir,
I was given a cheque to him as token money against property, i said him that the same cheque will be encashed only if makes agreement with me in written. But he did not make any agreement with me nor return cheque to me. I had number of time visited in his office with my wife, he did not given back my cheque. I compelled to close my saving account from where that cheque was given. When he presented the same cheque into bank, the bank return the cheque to party with remarks "insufficent fund". Now he has filed suit upon me with the demanding Rs.2Lac under section 138. He is saying that he has given cash loan to me against the same cheque. Please suggest me
Guest
(Expert) 22 April 2011
Dear Kapil,
First of all, the cerificate of bank about insufficient funds is wrong and false, if given in 2009, while the Bank closed your account in 2005.
Secondly, the suit under sec 138 may not lie due to closure of account, as the section deals with only insufficiency of funds.
You can fight the case on these grounds and the case can be expected to be discharged.
