Sec 138
sajoli
(Querist) 13 November 2011
This query is : Resolved
my client has given certain undated cheques for the bills outstanding.
on his letter head there is a condition "kindly note all above cheques are only for the purpose to show your bankers as a security deposit and confirmation of outstanding balance with us.pls do not deposit the cheques unless an until you get our written confirmation,kindly acknowledge."
i have only put my initials on the above and it does not even bear my company rubber stamp.
1) what can i do to recover my outstanding amounts?
2) how can i use these cheques?
3) what if he does a stop payment of the cheques?
4) do i have to wait till he gives me a written confirmation to deposit the cheques as i have just put my initials and what is its legality?
i even have the delivery challans bearing his signature and some have his company stamps also.
He also has mentioned cheque nos,bank name, and amount on my outstanding ledger on which he has written "above mentioned cheques has been given for this statement(outstanding)".
pls suggest a way in which i can get my hard earned money back bcoz i think he dosent intend to repay.
Raj Kumar Makkad
(Expert) 13 November 2011
1. You should obtain his permission as per his undertaking.
2. If no permission is given by your client then deposit those cheques for collection.
3. It also fatches an offence punishable under section 138 NI Act.
4. Yes.
You should provide details of your outstanding in the notice seeking his permission with warning that if his reply with due payment is not received within a stipulated period, such cheques shall be sent for collection.
Rajeev Kumar
(Expert) 13 November 2011
I agree with mr.makkad
Shonee Kapoor
(Expert) 14 November 2011
No reason to differ.
Regards,
Shonee Kapoor
harased.by.498a@gmail.com
prabhakar singh
(Expert) 14 November 2011
you very aptly advised by mr.makkad
Sailesh Kumar Shah
(Expert) 14 November 2011
No reason to differ with advise of Mr. Makkad.
dev kapoor
(Expert) 14 November 2011
Hi all there,
With utmost deference I have different views.Ms. Sajoli, you will have no case u/s 138 NIA in case there is tangible evidence that cheques are delivered as "security".However you have the best case for "Recovery" of your fees etc,if any by filing a suit for recovery only.
The best thing Mr.Makkad suggests is to 'seek permission' of your client to get the cheque(s) encashed.If you succeed,you certainly gain a case in the event of 'cheque bounce'& ,of course,after adopting due course of law.Regarding opinion rendered on (2),(3) & (4) I respectfully differ & say without mincing words the cheques are advanced as SECURITY.There is catena of judgment of this issue.
Take care !
