section 138(cheque bounce of EMI)

Querist : Anonymous (Querist) 19 December 2009 This query is : Resolved
My father is running a unit in textile industry.We have taken a Personal Loan worth Rs.10 lacs from different banks Now due to not having our repayment capacity the banks have issued the notice of Section 138 of Negotiable Instrument Act.Now my query is that as the personal loan does not cover any security so what can be the future consequences ? whether they can attach the property ?

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prakash vathore (Expert) 19 December 2009
if they have sent the notice of 138 then it means one of ur cheque is bounce. if u won't reply to their notice then they will file case u/s 138 of n i act. in that proceding they cant attach ur property but if they file recovery suit then in that procedings they can attach ur property.

Kiran Kumar (Expert) 19 December 2009
dear friend, S.138 NI act entails punishment....there are no provisions for the attachment of property under the said section.

Mr. Prakash Vathore advised correctly that it may happen in civil proceedings or proceedings before Debt Recovery Tribunal.

Adinath@Avinash Patil (Expert) 20 December 2009
COMPLAINT UNDER SECTION 138 OF N.I.ACT
IS A CRIMINAL PROCEEDING THERE IS NO PROVISION FO ATTACHMENT OF PROPERTY. ABOVE EXPERTS ADVISED RIGHTLY.

PJANARDHANA REDDY (Expert) 20 December 2009
NO DOUBT THE PERSONAL LOAN IS AN UNSECURED LOAN,BUT U CANNOT ESCAPE FROM THE LAW AS DEFAULTER.

GO TO THE BANK AND EXPLAIN THE SITUATION & TRY TO MAKE RESCHEDULING PLAN & DO NOT PANIC THEY THEM SELF GIVE U SOLUTION.

Khaleel Ahmed Mohammed (Expert) 25 December 2009
Yes the property can be attached under section 421 of crpc.

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