Cheque bouncing
AK Misra
(Querist) 18 October 2016
This query is : Resolved
Mr.Dhingra no one ask hypothetical questions.
In the present case a housing loan is repayable by 285 EMIs.No one gives that number of Cheques.Banks do take few Cheques as per their tendency.
Bank has initiated legal recourse under SARFaeSI/DRT . My simple question is that whether filling one of those cheques for entire outstanding amount which runs in lacs and getting it bounced makes a sustainable case under Section 138. What is the status of that Cheque?Whether it makes a Security to Banker?
I wish to have legal clarity with few citation cases from my learned colleagues. Thanks
Surrender K Singal
(Expert) 19 October 2016
Cheque if bounced for insufficiency of funds can attract 138 N I Act
Devajyoti Barman
(Expert) 19 October 2016
Yes, the case u/s 138 of NI Act is very much maintainable..
Rajendra K Goyal
(Expert) 19 October 2016
Holder has authority to fill the blanks in the cheque. It is not a material alteration.
Action of Bank is legal.
It is not security, it is payment to Bank for loan outstanding / liability.
Rajendra K Goyal
(Expert) 19 October 2016
Repeated:
http://www.lawyersclubindia.com/experts/Cheque-bouncing-620366.asp
Kumar Doab
(Expert) 19 October 2016
Why to repeat?
Kishor Mehta
(Expert) 19 October 2016
Sir,
While the bouncing of a cheque is an offence under the law and subject to prosecution, it is unethical for the Bankers to fill the entire amount payable in 285 installments in a single cheque, if it is not specifically agreed upon at the time of sanctioning the loan.
Good Luck,
Kishor Mehta
Rajendra K Goyal
(Expert) 19 October 2016
Sir,
In the loan agreement, generally there is a clause, that if any installment is due, full outstanding amount is due and loan can be called. bank can initiate action as per SARFAESI Act.
Whether author has received a copy of the documents executed as per RBI guidelines?
If yes, should go through the terms.
