Notice U/s 138 of Negotiable Instruments Act
Querist :
Anonymous
(Querist) 30 November 2010
This query is : Resolved
Sir,
Please let me clarify that if stockiest sent the At Par Cheque in advance and on the basis of this we have raised the invoices of said party and deposit the cheque in our bank but please note that the consignment not booked the trnasport and hold the same for waiting for clearence of said cheque. In hte meantime the said cheque is dishnour due to insufficient fund. Please let me knoe in that situation I cue Notice to Stockiest U/s 138 of Negotiable Instrument Act.
Note : Still we have not despatch the consignment.
With Regards,
Binod Kr. Sinha
M.Sheik Mohammed Ali
(Expert) 30 November 2010
your query is not clear, anyway if the cheque was returned from the bank due to insufficient fund, you can send a notice to opp party, you must have proof of your transaction of goods.
malipeddi jaggarao
(Expert) 30 November 2010
If you have not sent the consignment where is the consideration. Unless consideration is passed you cannot take action under Sec.138 of NI ACT. That too when you have parted with the goods, why do you wish to take action?
malipeddi jaggarao
(Expert) 30 November 2010
Please read the last sentence as : "That too when you have not parted with the goods, why do you wish to take action?
Querist :
Anonymous
(Querist) 30 November 2010
Sir,
I want to serve notice u/s 138 as instructed by my G.M but till time I have not issue the notice to said party and also want to convience my boss with proper reason and providing case law in this regard.
Please help me.
With Regards,
Binod Sinha
sachin sethi
(Expert) 30 November 2010
dear,, action under 138 negotiable instruments act presupposes the concept of legal liability and consideration,,but in your case both are absent,,as neither the firm issuing cheque owe any legal liability towards you nor there is any consideration..as such issuing notice to such a firm will be a futile exercise..
