138 negotiable instrument act

dnyaneshwar (Querist) 12 November 2014 This query is : Resolved
I would like to know what is the liability of accused on cheque issued for purpose of security.???

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Devajyoti Barman (Expert) 12 November 2014
Nothing as in such cases no case u/s 138 NI Act lies.

Rajendra K Goyal (Expert) 12 November 2014
Academic query.

Advocate Bhartesh goyal (Expert) 12 November 2014
Cheque given as security does not come under the purview of sec 138 of N.I.Act.

ajay sethi (Expert) 13 November 2014
agree with Mr barman and Mr Goel

Dr J C Vashista (Expert) 13 November 2014
Academic query.

Sunil S Nair (Expert) 15 November 2014
Its perfectly best advised by Respected Adv.Goyal, but when you give such cheque Take down in writing a declaration :
1] The concerned Cheque No. is issued solely for only Security Purpose
2] Time Limit for the cheque given
3] Has to be returned once all dues are clear
4] Responsibility if cheque is misused then for what it is given or if lost by the party

This are only some aspects that can help in court if any misuse is done

T. Kalaiselvan, Advocate (Expert) 16 November 2014
The follow up advises given by expert Mr. Sunil Nair is excellent, which may be followed. In the present case, it is to be established that the cheque was given for the purpose of security alone, this will lie on the defence counsel.

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