Stop payment of cheque reg
sakthi
(Querist) 14 March 2012
This query is : Resolved
dear sir
i am a small business man and dealed with one company for security reason i have given 2 cheques to company i left the company distribution they commited annual incentives and still they are not given the valid statement with credit notes as per my friend openion i given the stop payment for the security cheques given to company past two years they not honest the commitments they cheat me also there is no writen commitmnets and oral only so kindly give the guidelines
Arvind Singh Chauhan
(Expert) 15 March 2012
As per my knowledge there are many citation that security cheque does not cover section 138 NI Act. But company may seek civil remedy.
SAINATH DEVALLA
(Expert) 15 March 2012
Dear Mr.Shakti,
You have to submit documentary proof that they are security cheques.Otherwise section 138 attracts.
Deepak Nair
(Expert) 15 March 2012
Yes. You need to prove that the cheques were issued as security cheques and not in deischarge of any liability.
Shonee Kapoor
(Expert) 15 March 2012
I agree.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Guest
(Expert) 15 March 2012
Agree with the opinions.
SAINATH DEVALLA
(Expert) 16 March 2012
DEar Mr.Shakti,
Stop payment is not the solution.Even for stop payment you have to show valid reasons.Unless you have a strong evidence that the cheques were given as a source of security mentioning the purpose,you cannor defend.Of course there are many possibilities in our legal system,which I should not mention.You have not mentioned the amount of liability.If it is a small amount go for a settlement.
malipeddi jaggarao
(Expert) 17 March 2012
When the cheques are to the employer as security deposit unless they claim the amount of default from you, even the cheques if presented are bounced, they may resort action under Sec.138 of NI Act. You have good defence if you have not violated the conditions laid down towards security deposit.
V R SHROFF
(Expert) 17 March 2012
security cheque does not cover section 138 NI Act.
But to safeguard yourself, issue notice, asking them to return your security cheque, instruct not to deposit in bank.
