Sec 138 of n.i.act
anckoora
(Querist) 16 August 2011
This query is : Resolved
Dear Sir,
What can be the consequencies for following incident ?
"SELF" cheque given to a person. When he went for withdrawal, there was no balance in the a/c of cheque issuer. Can payee file a complain under sec 138 of N.I.Act?
FACTS : SELF cheque was given against repayment of money taken in cash by the cheque issuer (nothing in writing).
pl. advise.
anckoora
ajay sethi
(Expert) 16 August 2011
inorder to come within ambit of section 138 NI there must be debt due and payable . you have stated that money was taken in cash . what was the amount of loan taken ? whether it was more than Rs 20,000 . in cash
since there is nothing in writing it will be difficult to show that there is debt due and payable .
prabhakar singh
(Expert) 16 August 2011
Let things be as they are. in given facts you can not be punished u/s 138 as it was a self cheque and not endorsed in any body favor.But i advise you to pay as an honest man as it appears from your version ,you are his debtor.
