Ni act 138

Such cheque will come within purview of section 138 of N.I. Act only after proper notice of gurantee becomes due is given to the issuer of the cheque. Otherwise normally, security cheques are not covered.

www.aegisjurist.com

https://www.facebook.com/aegisjurist

Thanks Mr. Goutam Prasad for your reply,however can you please elaborate and explain "only after proper notice of gurantee becomes due",

Thanks

Judgments on security and guarntee cheques are misquoted and not read in proper context.

In your case the cheque is for payment of principal so on bounce NI 138 is applicable.

However the accused have many othe eascape routes which arise due to comman lapses by the complainant or creditor.

Mr. Yogeshwar thank you for the update Kindly identify and help me to plug the escape routes and please list the lapses that need to be avoided.

Thanks