Legal proceddings u/s.138 of ni act 1881
sudhakar s. yeradkar
(Querist) 21 February 2013
This query is : Resolved
Dear Sir,
We seek your expert advise on..
Our One client had issued cheque to discharge his liability. On presentation of the same it is dishonored. His Bank memo remark is "FUND INSUFFICIENT" & another reason is "CBS ACCOUNT NUMBER REQUIRED'
Our Banker has issued memo with only one reason for dishonored is '"CBS ACCOUNT NUMBER REQUIRED'
The client is not reliable.
We would like to know - can we proceed for Legal action U/s.138 of NI Act on basis of aforesaid reasons.
We are waiting for your expert advise at the earliest.
Thanks in advance.
Sudhakar Yeradkar
Nadeem Qureshi
(Expert) 21 February 2013
DEAR Querist
CBS ACCOUNT NUMBER REQUIRED' is not attract section 138 of NI ACt
DEFENSE ADVOCATE.-firmaction@g
(Expert) 21 February 2013
When both slips are attached the process for NI 138 can be issued since recent SC ruling has taken into consideration all such eventualities and the APEX COURT is of the view that the cheque bounce is genus and all other reasons are its species.
However the accused will have no of opportunities to resist the trial on many many technical issues and mistakes generally made by the complainant in framing the pleadings in complaint and issuing notice.
Adv Raj (High Court)
(Expert) 22 February 2013
Bank memo remark is "FUND INSUFFICIENT",
Mr. sudhakar, only this statement and the realty that the cheque has bounced is sufficient to initiate 138 of NI Act.
Take a copy of the bounced cheque and proceed under 138 NI act.
Good luck
RAJU O.F.,
(Expert) 22 February 2013
/as the cheque is bounced with the reason of Insufficient Fund, you may prefer complaint u/S 138 of NI Act.
V R SHROFF
(Expert) 22 February 2013
First of all, Issue notice u/s 138 NI , demanding your cheque amount; Wait for it's Reply ..
Later decide on basis of reply, if any.
R Trivedi
(Expert) 23 February 2013
earlier when CBS system was not present mainly with PSU banks, there used to be around 4 digit account number,
after this CBS introduction, the account number got changed to 14 digits, but still the older account number as stated in the cheque were linked to new CBS number, if it was the branch clearance.
But now when majority of clearing is on scanned basis at central point without involving the branch, the new CBS number is required to access the account.
But the point is if the Bank clearing point did not have CBS number, how did they say insufficient funds.
It also suggests that the cheque is quite old. case can be filed, no doubt, but complainant must be careful in framing the complaint.
