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Victims 138 (teacher)     04 October 2010

Really Difficult situation: quashing cheque bounsing case:

A coaching institute hired many employees, for three months training and 6 months probation after completion of training. At the time of joining, HR manager asked the employees to submit two post-dated cheques, a non-judicial bond of not quitting before three years. Cheque were from the salary account bank only( which was opened by the company) First cheque was against the training cost plus salary of the training period: Rs. 60,000/- (training cost as said by the coaching institute) plus Rs. 75,000/- (salary of three months of training) = Rs. 1,35,000/- Second cheque was against the salary of 6 months probation duration: 1,80,000/- There was no proper training. There was inhumane treatment by the company. Employees were harassed. Salary was not paid on time. Some started falling sick, some physically, some mentally. It became impossible for most of the employees to continue. When employees talked to the HR manager, he asked to resign. Some resigned; some were so pissed off with the work culture that they left the company. All left the company before completion of training i.e. before 3 months of training. Later the company bounced the first cheque and served notice to pay the money. No one paid and now there is Section 138 case against all. There are about 12 such cases. No one got the complete salary of three months. So the amount in the cheque was not exactly what the employees were supposed to pay. All have hired one lawyer only. 

In the first hearing judge ask if we were ready to pay the money. We said "No as the company has done a fraud" Judge didn't ask for bail but asked to submit a reply in next hearing. In the mean time we decided to go to the HC for quashing petition. Our lawyer assured of applying for quashing before next hearing but didn't and also didn't give reply to the court in the second hearing, saying he was not well. Judge imposed a fine of Rs. 100 and gave next date. Now our lawyer says he has applied to the high court but doesn't give a copy of quashing petition; he keeps saying the listing would be next week, but since past 2 months there has been no listing. WE only hear from our lawyer next week. We have paid him Rs. 50,000/- We read some where, HC is not generally entertaining the quashing petition for sec 138 as many people go to the HC to prolong the case. But ours is a genuine ace. Also we have signed blank vakalatnama and handed it to the lawyer but not any affidavit as such. We are not able to understand the lawyers's behaviour. Also the next date is going to come soon. But we don't have any updates about the case from the lawyer. We think the lawyer is taking ht case very lightly. Please suggest as most of these are young people which are applying for various govt jobs and sitting in competitive exams or doing higher studies.

Also the company is not ready for out-of-court settlement, because these young guys don't want tension in their early stage of career. So they are even ready to negotiate with the company, though they know they are npot guilty. God knows what has happened to the justice and values in India.

Thanks in advance for your suggestions.



Learning

 12 Replies

DEEPAK ASSOCIATES (08010117611)     04 October 2010

The reply to the trial court must be submitted in time stating actual and true position. The Trial court has power to drop the proceeding.

Further The hon'ble High court can quash the proceeding u/s 482 CrPC showing the actual and true status.

The cheque was issued post dated thus it is security cheques which did not call any prosecution u/s 138 NI Act.

Generalyl trial court take the bail first and proceed further. However it is not a matter of discussion

1 Like

Daksh (Student)     05 October 2010

Dear Victim 138,

First and foremost the ingredients of Section 138 NI Act propounds that there has to be a debt due and payable.  In your case the same does not happens to be the case - the only glitch is that you have at the time of resignation have not brought out the fact on record.  Secondly at the time of reciept of notice u/s 138 N I Act there existed second opportunity to put your defence at the forefront.  Thirdly there needs to be no reason or rhyme in delaying in putting on record your defence before the trial court.  Fourthly yes you do have a strong prima facie case to succeed in Section 482 Cr P C petition and these days most of the high courts have computerised registry and you can ensure that your case should come up for hearing very soon so that the proceedings before trial court can put on stay and secondly the notice is issued to the other party as well. 

Last but not least it is advisable that you should contact some seasoned labour laws expert who will guide you in the light of  model standing orders and other labour laws to come out of the draconian one sided service contract and employment bond.  Pursue all your available remedies with zest and vigour and let victory be yours.

Best regards

Daksh

1 Like

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     05 October 2010

If the matter is in court you have to contest than you can come out of it.

1 Like

Victims 138 (teacher)     06 October 2010

@ Mr. Deepak Kapoor: Thanks for your reply sir. The cheques were actually undated and the company had put the dates on them to bounce the cheques after the employees left the company.

 

We don't know how to deal with the lawyer. He dosen't give us the copy. Neither has he given us the file no of high court petition. One he sent a draft of the petition, in which he made so many factual mistakes. We are afraid that court will dismiss the petition if there are mistakes. The lawyer is not behaving professionally. 

Also please tell us that normally how long it takes for the high court to accept or dismiss a quashing petition after appying to the high court. Because the lawyer always says next week, when we ask him and the listing day has never come. It has been a month since the lawyer has applied, according to the lawyer. 

Should we change the lawyer. OR any other suggestions please.

Victims 138 (teacher)     06 October 2010

@ Mr Daksh: Thanks for the information. Even we have heard the same that our case should not fall under section 138. Can you suggest some good labor law expert. Actually the company is very wicked and sometimes even try to buy the lawyer of the opponent. It has become a usual practice of the company to trap people in section 138. The company is misusing the law to make money and enforce bonded-labour.

Victims 138 (teacher)     06 October 2010

I have a general question. Is it necessary for the accused to be present in all the hearings? As some accused have gone for college again and they have exam on the date of hearing. Also they are very far from the place where proceedings are going. 

Victims 138 (teacher)     07 October 2010

Please answer, I am waiting for the replies. It is urgent.

R.Ranganathan (Advocate)     09 October 2010

I agree with expert Mr. Daksh. All of you need not appear every time. You can ask your lawyer to file a Petition if anyone of you cannot appear on a particular day. You have got a good case for quashing it. So don't worry about it. 

1 Like

Victims 138 (teacher)     09 October 2010

@  Mr. Ranganathan

Thanks for your reply. We have asked the lawyer to do so and have also paid him very well. The only problem is the unprofessional attitude of the lawyer. He hasn't done anything till now. And he is also avoiding our calls.


(Guest)

NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE

MOBILE.9271971251, 9960223100

e.mail.advocatesawantnb@yahoo.com

e.mail.nandkumarbs@sify.com

REGARDING THE CHEQUE DISHONOURED CASE AND HC PETITION KINDLY NOTE THAT.

1.YOU MAY KINDLY NOTE THAT THIS IS A TECHNICAL MATTER AND AS CHEQUES ARE DISHONOURED AND THE COMPANY SEEMS TO BE VERY SMART AND HAVE COMPLETED ALL LEGAL DOCUMENTS AGAINST YOU ALL.

2.YOU HAVE TO DEFEND YOUR CASE STRONGLY AT LOWER COURT. KINDLY DO NOT MAKE UNDUE HASTE .KINDLY DELAY THE LOWER COURT CASE  AND TRY TO EXPEDIATE THE HC MATTER.

3.YOU MAY FILE A DISCHARGE APPLICATION IN THE LOWER COURT AND PRAY FOR DISCHARGE ON VAARIOUS GROUNDS.IT WILL PROLONG YOUR LOWER COURT MATTER PLEASE NOTE.

4 RECENTLY .I MANAGED TO GET ONE CASE FROM BANDRA COURT MUMBAI RETURNED TO THE COMPLAINENT  ON LAW POINTS.THE OLD LADY ACCUSED WAS FROM JALANDHAR AND WE DEFENDED THE MATTER STRONGLY.BLANK CHEQUE WAS MISUSED BY WRITING AN AMOUNT OF ABOUT  RS.9,00,000/- HENCE IT IS ADVISIBLE FOR YOU ALL TO DEFEND THE MATTER STRONGLY AND SUBMIT ALL FACTS BEFORE THE SAID COURT.

5.YOU MAY FOLLOW UP YOUR HC PETITION AS THERE ARE GOOD CHANCES OF ACQUITAL.

6 YOU MAY WRITE AND  SEND DETAILS WILL HELP YOU.

GOOD LUCK.

 

1 Like

Victims 138 (teacher)     12 October 2010

@ Mr. NandKumar B. Sawant:

 

Thanks for providing this informations. 

 

There have been some updates. The judge asked the complainant if they are ready to settle the case by taking some payment. The lawyer of the complainant agreed and said he would discuss with the management and would tell the amount on which the company can negotiate. 

Now we have to decide if we should settle it or not. Will it come in the records if we settle the case. We mean would we be considered as criminal offenders? Also if we settle it what should be the mode of payment? And should we prepare a documented proof of settlement? If yes will it be an affidavit or the court will prepare it? 

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     12 October 2010

Shri Sawat sir pl tell us under which section the case in lower court U/s 138 of NI act got quashed.


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