cheque returned case 138 NI Act
Querist :
Anonymous
(Querist) 27 January 2011
This query is : Resolved
One cheque for Rs.6,00,000/- was presentedin my accountin which payees name was altered without authentication by myself, returned by the Bank for the reason that : OPENING BALANCE INSUFFICIENT
Party has complained against me in court under 138. The payee is not known to me and there is no transaction happened between us. Now, what to do in this present situation, please advise and guide me. Case is now in court, no proceedings are run, only dates are given by the court and I have attended it.
Thanks a lot
Devajyoti Barman
(Expert) 27 January 2011
If there is no transactiion between the drawer and the drawee of the cheqye then you should not worry. Wait till completion of trial, you soon would be acquitted.
Amit Minocha
(Expert) 28 January 2011
what stand did you take when you got a legal notice before the case ? did you deny the transaction ? You will have to contest the case
KAMAL SONI
(Expert) 28 January 2011
As per the recent guidelines given by RBI in case of insufficient balance in the account to honor the cheque, the cheque will be returned by the bank with the reason of insufficient funds even though alteration is present on it. The cheque will be returned with the reason alteration present on it only if your account carries sufficient funds to honor the cheque.
Querist :
Anonymous
(Querist) 01 February 2011
I have not responded the notice. The blank cheque was given to my close friend who had miused by giving itto his friend by writing name of his friend.The reason shown by the Bank is "opening balance insufficient". Bank has to wait for the funds up to closing of the banking hours.How it possible to returned it in opening of Bank business? The matter is that the Branch Manager with his two companion, upon whom my wife made police complaint for their mis-behvior in absence of my self at home, it seems to take revenge of that police complaint, the Branch Manager returned the cheque with the reason that opening balance is insufficient. Primafacie, a cheque is seen altered in payees name, as a prudent Bank Manager one should returned it with the reason :alteration requires drawers authentication. moreover, cheuqe bears my signature only on it in my handwriting, all other written on the said cheque is in another one's hand writing, now please guide me.
R.Ramachandran
(Expert) 01 February 2011
If you had given a blank cheque and the name was filled up later on, it cannot be called alteration. Rather it would be presumed (whether you actually did it or not is not the question) that you have authorised the holder of the cheque to fill up the name. Therefore, there need not be any separate consent from you for this. On this basis you cannot say that there was any alteration in the cheque. You yourself are admitting that you gave a blank signed cheque to your friend. You have to explain in what circumstances and what for you issued the cheque to your friend. Now you say that you have nothing to do with the person in whose name the cheque is there. IF IT BE SO, WHY DID YOU NOT ANSWER THE NOTICE U/s. 138 RECEIVED BY YOU?
In any case, if you can prove that there is no transaction between you and the holder of the cheque, then as rightly mentioned by Mr. Jyothy, you can come out clean. But you have lots of explanations to do before the court.
Querist :
Anonymous
(Querist) 01 February 2011
Sir, I want to clear the matter that the name of the payee in the said cheque was once cancelled by drawing line on it, and again it is written the name of the payee, so in my view, it is material alteration and as per banking practice and law, cheque should be returned with the reason " Alteration requires drawers authentication" as the prima facey it seems. Please guide me in the matter. Thanks a l0t.
