adv. rajeev ( rajoo ) (practicing advocate) 10 July 2010

NI Act " Exceeds Arrangements"

I am contesting NI act on behalf of the one of the accused, who had issued a bearer cheque of the partnership firm to the complainant. Bank has returned the cheque as exceeds arrangements, which was filed after 5 months by the complainant for encashment. Firm had over draft facility but OD limit was crossed. Let me know whether exceeds arrangements amounts to an offence u/s 138 of NI Act/

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Adv Archana Deshmukh (Practicing Advocate) 10 July 2010

OD limit is the maximum amount that can be paid from the account by an arrangement with the bank. So, when OD limit is exceeded, it should attract s. 138NI, according to me.

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