420 criminal case in seed transcation

sajed (Querist) 21 February 2012 This query is : Resolved
compliant is seed business tarder .he supplied seed to accused .accused issued cheque of 1 lakh that was dishonour due to insufficent fund .Accused requested compliant to agian deposit same cheque but that was also dishonoured due to Stop payment . can compalint file criminal case u/s 406,420 of ipc. ? or recovery of amount is good option ? 138 of NI act will b weak case ?

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Khaleel Ahmed (Expert) 21 February 2012
You are advised hereby to file cheque bounce case . You can file a civil suit for recovery of debt amount.

Raj Kumar Makkad (Expert) 21 February 2012
The Hon'ble SC has given strict interpretation to S.138 of NI Act in 2009 in Raj Kumar Khurana's case.

Now, in case the cheque is returned for the reasons payment stopped or account closed then the provisions of S.138 NI will not come into play.

You will have to file complaint under other relevant provisions of IPC viz. 406/420.

otherwise, you may file civil suit simultaneously. Both Civil and Criminal proceedings can run together, there is no specific bar

Ghanshyam Prasad (Expert) 21 February 2012
you can file complaint case both u/ipc and I.N.Act.For detail contact me .

Deepak Nair (Expert) 21 February 2012
You have to file a complaint under sec.138 of NI Act.

Whatever may be the case, the chance of winning depends on how well you can prove your contentions before the court.

Since it is a cheque bounce case, the police will not entertain you with regards to 420 etc.
Even if you file a private complaint for fraud etc., that will be less effective.

So, the better option is to file a case under section 138.