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Bounced cheque sec 138

(Querist) 23 June 2017 This query is : Resolved 
I did some work with my friend as a finance but no agreement was made. I gave him a cheque as security which was to be deposited when we got the final payment for work being done.
Cheque was in his personal name. He deposited the cheque before we completed the job and in front of his name wrote proprietor Sanjay Enterprises in his own hand. Date also put by him on cheque. Then he filed case under 138 saying he has supplied goods to my firm and cheque issued to Sanjay Enterprises in settlement of that debt ( whereas I issued cheque to Sanjay Kumar and he wrote Proprietor Sanjay Enterprises in his own hand just to prove liability of my firm to his firm. He has no order from my firm, no goods received by me, no invoice or delivery challan and generally no documents whatsoever. Does this amount to cheque tampering ?
Am I liable to prosecution under 138.
Thank you.
Inderpal Singh
Rajendra K Goyal (Expert) 23 June 2017
If he added any thing with the name of payee it amount to material alteration. You should oppose the charges on merits.

Engage some senior lawyer.
Advocate Bhartesh goyal (Expert) 23 June 2017
If cheque has not been issued towards any debt or liability then you should not worry.defend the case on merits.
Inderpal Singh (Querist) 23 June 2017
Thank you. I have engaged lawyer to defend case on merits.
Dr J C Vashista (Expert) 25 June 2017
I respectfully disagree with the opinion of the experts since the queriest has not endorsed "security" on the cheque, therefore it is presumed (u/s 139 N I Act, 1881) to be issued against legally enforceable debt.
Moreover, the author/accused has signed/admitted signed the cheque, it is not necessary/compulsory/ mandatory to fill the cheque in his own hand-writing, it can be filled by holder of the cheque in due course, which is beyond the preview of "material alteration" and provisions of section 138 N I Act is attracted.

If you have already engaged a lawyer, what was the necessity to post this query? Just it is available FREE OF COST?

P. Venu (Expert) 25 June 2017
What is the reply you have given to the mandatory Notice?
Inderpal Singh (Querist) 03 July 2017
Cheque was issued in name of Sanjay Kumar. In his own hand he added Proprietor Sanjay Enterprises. He further put the case alleging Sanjay Enterprise has supplied material to my company. No documentary evidence produced by him. Debt claimed towards Sanjay Enterprises cheque issued to Sanjay Kumar in personal name. How this cheque becomes one issued to settle legally enforceable liability. If not how it attracts 138.
Thank you


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