Ni138 case - singapore
Querist :
Anonymous
(Querist) 28 April 2019
This query is : Resolved
our Company name ABC based in India open a branch in Singapore called ABC SINGAPORE
ABC SINGAPORE WILL l billTto INDIAN BASE CUSTOMERS in $
so billing from Singapore delivery in India.
we will be getting PDC from our customer for such billing if customers default can same be recoverable u/s. 138
Saket Agarwal
(Expert) 29 April 2019
what is the status of singapore company. Whether it is subsidiary or a new entity in singapore.
H.M.Patnaik
(Expert) 29 April 2019
Anonymous query seems to be an academic/hypothetical issue. Hence not to be answered as per forum principle.
Querist :
Anonymous
(Querist) 30 April 2019
Dear Sir,
it is subsidiary company (Parent company is in India)
Querist :
Anonymous
(Querist) 30 April 2019
Dear Sir,
it is subsidiary company (Parent company is in India)
Querist :
Anonymous
(Querist) 30 April 2019
Dear Mr. Patnaik myself is working as Asst manager my name is Amit Shah
H.M.Patnaik
(Expert) 30 April 2019
Dear Mr. Shah,
As I gather from your post and subsequent clarification, the original transaction was between the Singapore company and Indian customer and invoice trail would have flowed from Singapore itself against which the cheque was received.
As per the Negotiable instruments Act, jurisdictional court where the Complaint can be lodged upon Dishonour of cheque may be either the place where the transaction got initiated or the place where the defaulting party is located.In the instant case , the case can be lodged at the location where the defaulting party operates his business or resides and the Complaint case can be filed by the Indian holding company on behalf of the Singapore based subsidiary company.
Hemant Agarwal
(Expert) 18 August 2019
INTROSPECT OF THIS:
1. 138 N.I.Act, is all about "legally enforceable debt /liability" of the person /Legal Entity, who provides services /goods (means Drawee /Payee) to the person (means drawer) issuing the Cheques.
2. By virtue of the above, "IF" Billing is done by Singapore Co. (even if it is subsidiary of Indian counterpart), THEN obviously the Billing is reflected in the accounts of the Balance Sheet of the Singapore Co.
3. The above point no. 2, also means that the Billing ("legally enforceable debt /liability") is "NOT" reflected in the accounts of the Balance Sheet of the Indian Co.
4. The above point no. 2, further means that the Indian Co. has no privily of contract with the "drawer" and neither the Indian Co. is the "payee".
5. The above further also means that the "drawer" has no "legally enforceable debt /liability" to the Indian Co., and the "drawer" shall be issuing Cheque /PDC in name of Singapore Co. The Drawer CANNOT issue cheque in name of Indian Co., since this will cause legal conflict in the Balance Sheet's of all the three parties, having large Income Tax ramifications.
6. Thus by virtue of the above, the entire prosecution shall fail for "legal default" and "no jurisdiction".
Keep Smiling .... Hemant Agarwal
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