MISUSE OF sEC 138 NA

GIVING BLANK CHQ  AGNAIST SECURITY IS THE COMMON PRACTICE IN  BUSINESS COMMUNITY AND EVEN IT IS  ALSO ACCEPTED PRACTICE.

IN YOUR CASE WE UNDERSTAND YOUR CONCERN, BETTER DISCUSS WITH YOUR ADVOCATE ALONG WITH THE COMPLAINT OF THE PARTY  , THEN PROCEED WITH THE CASE.

SAINATH DEVALLA

                                 It is a common practice for financial institutions (including Banks), to obtain blank cheques from the customers as a source of security.At the outset a loan is processed on the basis of Income proof or fixed asset security.But still they insist on blank cheques as a measure of additional security, just taking into perview section 138 of NI act.Blank cheques with the mere signature of the person issuing it,is not valid as per number of verdicts of many courts,including the Supreme Court.The cheque is valid only after it is filled in all aspects by the person issuing it.

                                    Private money lenders have been continously misusing section 138 for their personal gains.There has to be some end to this somewhere.

Dear Author,

I want to know whether that financer is license holder or not. There are more queries to mke the same clear from u. U can call me at 09871158578.

Dear Sir,

Thanks alot for your prompt reply and advice. I am happy to know that nobody can take law for a ride(writing any amount they wish). I have a few more questions to ask you in my case.

The most important thing is he is not a registered financier and has claimed he has charged Interest for the amount he has lent.

a) Can a person not registered as a financier claim he has lent such huge monies and collect interest?

b) Is there any way to proscecute xyz for misuse of blank cheques given as security before he issuing summons on Sec 138 NI? If yes, under which section?

c) plz suggest me any other judgment which might say that section 138 of ni cannot be invoked if cheque is issued for  security and also judgments which also bars invoking of 138 if cheque is issued as surety.

Awaiting your earliest reply

Regards

Murali

Please read my submission on this topic and response.

You can not choose to remain overconfident, the law works on both sides.

Just your telling will not do. You to prove cheating in case of blank cheques. Giving blank cheques perse is not offense.You can be prosecuted because the fact remains that you gave signed cheques blank or not.

So unless cheating is not proved the law will be against you.

In such cases you have fight at every step at every stage and against every action than only you may expect to get some relief.

OVER CONFIDENCE WILL BE FATAL.

What will happen if after giving signed blank cheques, a police complaint is lodged that these cheques have been lost as stolen before the party has a chance of presenting it be it a Bank or anybody else?

While giving police complaint you have to explain how the complainant got hold of the stolen cheques.

You are not allowed to make absurd allegations against any body.

You must give a plausible explanation for misuse of signed cheques .

What will happen if after giving signed blank cheques, a police complaint is lodged that these cheques have been lost as stolen before the party has a chance of presenting it be it a Bank or anybody else?

_______________________________

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Dear Friends

XTZ has not any relevence for the source of income. I believe that he has also not shown any debt in his income tax return. He must have complaint only cash transction. It is supposed to be unaccounted money. Plese read link below of Mr Radhey. This may be helpful in your case.

 Unaccounted money given on loan----No case

https://www.lawyersclubindia.com/files/56_56_no_debtor_show_in_income_tax_return_no_138_ni_act.pdf

respected

      in connection to a blank cheque, i challenged in cr p c 227 and rquested to record the police investigation report.

Challenge under sec 227 cr.P.C

In connection to material changes in cheque, charges have been framed under 420,467,470,120B  etc. To challenge the charges u/s 227, It was asked to furnish detail the transaction of cheques,modus  of operanding in obtaining the cheque. A document as presented to prove that cheque was stolen and was filled in Blank .

                                               The A.P.P.O objected the application saying that documents and statements are subject of trial, in framing of charges these can not be accepted. he captioned case-- M.P.H.T 164 AIR 2000 sc 665 :2000 cr law  journal

Is the law one sided. anyone can to blackmail , impose the charges in private complaint and the accused can stand alone without allowing to defend .please guide the law.thanks.

It is not clear you are complainant or accused.

You seem to be an accused. If you think prima-facie case is not made out, go for discharge.

Regards,

Shonee Kapoor

harassed.by.498a@gmail.com

sir

 u have quoted good case. still i want more case where the petioner can be revesely charged for stolen cheque u/s impoosed 420,467.120b

very strange an advocte has poor practice ,claiming huge lacs otherwise go to jail . really wonderful practice

i am accused ,the advocte has defamed through several on charges framing in court