Sec 138
Vijay
(Querist) 27 January 2011
This query is : Resolved
Hi Friends,
I have Filed Suit U/s 138 against a party Which I have Given Cash Hand Loan of Rs.100000/- Which I have Entry in my Books of Account.
But the Said Party has sent me the notice that I do the Money lending Business Un-officially & I have given the money.
Wheather the Statement by him have any ground.
Amit Minocha
(Expert) 27 January 2011
it you admit you a e money lender then case is not maintainable , however if it is a friendly loan case would be maintainable
Parveen Kr. Aggarwal
(Expert) 27 January 2011
Yes. His statement, if admitted, would result into dismissal of your complaint because section 138 of the N. I. Act applies only to legally enforceable debt or liabilities. In case any agreement is entered into against the provisions of law, the same is not enforceable. So, if you admit that you are running money lending business without getting appropriate licence the loan amount will not be recoverable.
M V Gupta
(Expert) 29 January 2011
It is surprising as to how u could have lent cash of Rs. 1,00,000/-, as it is prohibited by the Income Tax Act. At any rate the notice given by ur debtor that you are carrying on money lending business should be suitably replied by denying the same. Under the ML Act a single transaction of lending does not amount to money lending business. The allegation should be proved by ur debtor before the Court by showing that u have been lending moeny to several persons over a period of time. So reply to the notice in consulation with ur Advocate so thart ur complaint under Sec. 138 of NI Act is not affected..
bhupender sharma
(Expert) 29 January 2011
the supreme court has held that any cash transaction above 20000 thousand as personal loan/ loan attract penalty under the I.T Act section 294(a) if the same is not lended through the bank and the same may be fatal to the person who assert the same in the suit or complaint under section 138 of the Act.
