Filing chq bounce case
Neelakandan
(Querist) 23 December 2011
This query is : Resolved
One of our customers, "A" has given a purchase order instructing us to raise the bill in another customer,"B" Also written as he ("A") is responsible for payments. My queries are:
(1) who can sign the purchase order
(2) If customer "A" is giving a cheque for the bill and in the event of cheque bounce, then can we initiate a cheque bounce case (plz note bill raised in the name of "B")
ajay sethi
(Expert) 23 December 2011
you have to obtain cofirmation from B in writing before supplying any goods that in event of defaults in payment B shall be liable to make payment .
B should sign purchase order as bill is being raised in B name .
if cheque issued by A bounces you will be in trouble as Bill was in name of B .
DEFENSE ADVOCATE.-firmaction@g
(Expert) 23 December 2011
If you can prove the sequence that issuer of cheque is equally liable for filing the complaint only.
Out of Court
(Expert) 23 December 2011
Indeed bill is raised in the name of B upon refernce of A .. but important point herein is the absence of any such ratification from B, and B is wholly absent from the scene in all, except reference of A that bill shall be raised in the name of B as stated in the fact ... further the liability for the chk bounce goes to the person who has signed the chk .. u can initiate the proceeding u/s 138 NI act against a .. further if there is substantial role of B in terms of ratification or whatsoever, but in substantial, then B can be produced as an evidence ..
Sankaranarayanan
(Expert) 23 December 2011
What is clause mentioned in purchase order if non of specified clause then those who given you order to deliver the goods to B. The agreement between u and the A not with B
V R SHROFF
(Expert) 24 December 2011
You can lodge Complaint in Court u/s 138 n i act only against the person who signed the dishonored cheqe.
He has to prove he is not liable.
A already signed PO, as u stated.
B 's consent not necessary, except that he recd goods. That's all to bind A , Even bil was raised on B under instruction of A.
However for 138 ni, only "A" is liable.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 24 December 2011
Issuer of cheque is liable even for debt of third parties but he has right to rebut this presumption if no LOCUS STANDI can be proved for particular transection.
Guest
(Expert) 24 December 2011
Here, you have not mentioned, who is the consignee of the goods or services.
However, I may have some difference of opinion with some experts. Since A has issued a formal puchase order (P.O.) with specific instructions in writing about raising a bill in the name of B and A stands liability for the payment, you can abide by the purchase order. Consequences is the sole liability of A. If A has issued cheque to fulfill his agreed liability, only A is liable to be held responsible for cheque dishonour.
In cheque bounce case the P.O. would prove to be the crucial evidence against A to prove his liability, besides the offence of cheque dishonour committed by him. Rather, he can be booked under sec. 420 also proving his intention to cheat by issuing such a misleading P.O.
Shonee Kapoor
(Expert) 24 December 2011
Agreed with Ld. Mr. Dhingra.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Devajyoti Barman
(Expert) 29 December 2011
Mr Dhingra has very aptly advised. Do as he advised.
ashutosh mishra
(Expert) 29 December 2011
Mr. Dhingra has very aptly advised.
Advocate. Arunagiri
(Expert) 29 December 2011
You have raised the bill only after the order placed by Mr.A. It may be true that the bill is in the name of Mr.B. In this case Mr.A is bound to pay you, as a guarantor.
so, your case against Mr.A is legally maintainable.
