N.I. Act S. 138
DEVENDRA
(Querist) 21 December 2009
This query is : Resolved
One person has drawn a bearer cheque written on it as " self " and after signing on back of it, he has handed over it to other person for his liability. The other person has presented it for encashment, but it has bounced for lack of insufficiency. In this case, whether s. 138 will attract especially when the cheque is written as "self" ?
Please answer along with any citation.
Raj Kumar Makkad
(Expert) 21 December 2009
No offence seems committed in the given matter without any certain proof of liability.
Kiran Kumar
(Expert) 21 December 2009
138. Dishonour of cheque for insufficiency, etc., of funds in the accounts
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall without prejudice to any other provisions of this Act, be punished with imprisonment for 2["a term which may extend to two year"], or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless-
(a) The cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier.
(b) The payee or the holder induce course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer, of the cheque, 3["within thirty days"] of the receipt of information by him from the bank regarding the return of the cheques as unpaid, and
(c) The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
if you read the above bare provision of law, no liability can be made out in your case.
DEVENDRA
(Querist) 21 December 2009
all other conditions are fulfilled.
I am asking only about " self "
PJANARDHANA REDDY
(Expert) 21 December 2009
SELF CHQ DOES NOT CARRY ANY LIABILITY TO ANY OTHER PERSON, IT IS THE FACILITY GIVEN BY BANKER TO DRAW CASH IN SELF ONLY.
Sukhija
(Expert) 22 December 2009
no 138 will b applicable. who will b the complainant, self?
Liability?
A V Vishal
(Expert) 22 December 2009
Experts: I am in disagreement of your opinions kindly refer: Mahesh Goyal vs S.K. Sharma on 21/2/1997, Punjab-Haryana High Court judgement.
J.D.Sharma
(Expert) 23 December 2009
please go through the attached judgement. i hope this will answer your querry
DEVENDRA
(Querist) 24 December 2009
Special thanks to Mr. J. D. Sharma
Ajay Bansal
(Expert) 26 December 2009
law is on both side.
