Negotiable Instruments Act 1881

ksadavijaykumar (Querist) 29 May 2009 This query is : Resolved
Query:Dt 29.05.2009

'A' has delivered a cheque to 'B' under a private understanding of business, the cheque is ordered pay to "BA a/c no.123456"
and crossed with payee's a/c only, the B presented the cheque in his bank account(B's name only) which was dishonored by "A", consequently B issued a notice under sec.138 of NI Act 1881 and proceeding for filing a criminal complaint against A.

"A" is under pretext and assumption that the "B" is not having a clear ownership or title over the value of the cheque or on the cheque under sec.8 of NI Act 1881, hence the complaint is not maintainable.

kindly clarify whether the argument of the A is correct or wrong? is complaint maintainable or not?

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adv. rajeev ( rajoo ) (Expert) 29 May 2009
It is not clear in your question in what way B is related to BA a/c No.
And it is also not clear that on what capacity B issued a notice to A.
If B is the holder of BA a/c then he will be the holder in due course. so complaint is maintainable.

Khaleel Ahmed (Expert) 29 May 2009
The cheque has been specifically crossed with account number. The holder of the account at cheque have to be deposit shall be entitled to file complaint against the person who has issued the cheque.The complaint is maintaibale.