Ni act 138

What are the other areas/methods of recovering all the costs incurred for the proceeding u/s 138 aginst a person

Ans : it depand upon court u/s 357 Crp  how much amount as to compensation award.

Thank you Mr. Kapoor for the information. Does the amount of the cheque involved has any bearing on the stamp duty. For example, the check amount being Rs. 1 Lakh, what should be the total cost if any that should be included while filing the complaint or the suit? Thanks in advance. 

As Earlier replied, as far as NI Act Sec 138, it is a criminal case hence the application fee as prescribed by the state is required. Mostly it rs 10/- and process fee is rs 50/-. being it is complaint case (criminal) hence it does not include the costs.

Further if any one file the suit u/r 37 of CPC (Civil case) then fee prescribed by the state govt has to be paid and in the suits costs, interest may be included according to the fee paid and Interest.

rgds

Thank you Mr. Kapoor for yur reply,

MY APOLOGIES for not being able to apprehend!.Ther is confusion here, the reason being the following,

I have entered into a MOU . The borrower had promised a regular returen on my Lump Sump Investment, by ECS.He issued a cheque as Gurantee for my Principal Invested.

The regular returns are not being credited to my account.

Hence when I present the Gurantee cheque to the bank and if it gets returened then I belive NI 138 comes into play,

Also I have been advised that to recover the money through 138 there is a stipulated 2 % stamp duty when filing the suit.Thus Rs 2000/- per Lac!?

Hence the confusion.which is better and faster and sure.

Kindly enlighten.

Also the notice if any to be given .when and any format avaialble please,

Thank you all,

The fee for filing the case varies from STATE TO STATE, for Maharashtra is two percent.

You have to prove legal liability just MOU is not sufficient.

How and when you parted with your money will also be important factor.

Cheque cases if contested agreesively will drag for years and years , so you have to engage an  advocate.to file and persue the case.

Thanks Mr. Dilbaug,

Sir,

If you read the preceeding comments it will be clear regarding my reasons of being not able to make up my mind!.

Now to answer your question the money was paid in cash a receipt for the same obtained, mentioned in the MOU, the Cheque No and all details are in the MOUalong with the bank name. etc.

The stamp duty that you have refered to is for what purpose (This is in Maharashtra ) and when does it become applicable?. Kindly also advise other better options to  contested cheque bouncing case that are non aggressive in your opinion and result oriented.

Thanks Sir,

You can file the case it may be admitted, notice will be issued. Other side will appear in the court and contest the case. In the long run if proper defense advocate is there it will be not be easy for you to win the case.

CHOICE IS YOURS.

Mr. Dilbaug,

Unfortunately your advice is not encouraging but scary!!!.

Can you elaborate on proper defence,?

Thanks

Let others give their opinion which may of use to you.

Dear Friend

You have to pay Rs/- 2 only as stamp fee  when filing complaint before Court.

After pay fee of Rs/- 5 for summon and Rs. 10 for  BW/NBW  fee.

You have to also pay evidence fee at the time of evidence.

257 Cr.pc provide you compensation.

Do not get bogged down by this fee business right now.

Talk with your party, if he settles, then fine, otherwise deposit this cheque, make sure that the amount which you claim on the cheque must not be more than your dues (after adjusting few credited ECSs)

answer is as follow:-

Question :  I have entered into a MOU . The borrower had promised a regular returen on my Lump Sump Investment, by ECS.He issued a cheque as Gurantee for my Principal Invested.

Answer : it is a good evidence, it shows legal debts

Question :    The regular returns are not being credited to my account.

Answer :      It is a question of facts and to be proved in the trial

Question :    Hence when I present the Gurantee cheque to the bank and if it gets returened then I belive NI 138 comes into play,

Answer :     absolutely

Question :   Also I have been advised that to recover the money through 138 there is a stipulated 2 % stamp duty when filing the suit.Thus Rs 2000/- per Lac!?

Answer :     The cases under u/s 138 are of criminal in nature, therefore, it cannot be said that money may be recovered, however mostly accused person in 138 cases pay the cheque amount upon compromise. being it is fear to them to go to behind the bar.

Recovery Cases are on different footing and are in civil nature.

Question :  Hence the confusion.which is better and faster and sure

Answer : NI Act 138 are faster rather civil nature cases. Now a days it is seen some state has start the evening special court for NiT Act 138 apart from regular special court for ni 138.

Mr. Kapoor,

Thank you very much for the much needed pointwise and detailed reply.

It has put me at ease now. Under advise I have to send a show cause notice/Informatory letter to the borrower with a copy marked to the bank on which the cheque is drwan.This will be to inform him that the Cheque issued by him is going to be presented to  the bank and that he should make the funds available for the same.Cc to The bank for information and necessary actionThe bank has to write back to me if the said party has stopped the cheque etc.(not Sure).

Kindly comment on this line of action Mr. Kapoor.

Looking forward and thanking you in advance.

Mr Trivedi, Thank you for your encouraging words.The Cheque is completed by the party with Payee's Name/Amount,and date.The cheque has been specifically issued for the principal amount received by the borrower.If at all the reconciliation of accounts os required the bank details can be produced.

The details of the completed cheque  have been mentioned in the MOU. The borrower has issued a receipt for the amount received.As per the observations of Mr. Kapoor Sec 138 of NI is apt and applicable.

Your observations and comments are welcome Sir,

Thanking you in advance.