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Venkat N Iyengar   01 October 2016

Bounce cheque

This is a case of cheque bounce case with intention to cheat. A & B are Indian by birth. 

A..holding Indian passport and working in middle east

B .. Holding British passport with NRE account.

A&B both entered into a MOU stating A will extend financial help to B for supply of Chemicals to an Indian Company with certain conditions as per global tender conditions. A helped B with 10 millions for PBG as requested by B. In lieu of that he took PDC from B. B has failed to perform as per tender conditions and therefore he had lost the tender.  The sum he took from A was not returned even after persistent follow-up.The PDC was deposited in Mumbai and bounced back for lack of fund and signature variance as B had his Bank ( NRE a/c) in Mumbai. What is the remedy available to recover the sum advanced to B.?

V.NARASIMHAN,Adv.,

 



Learning

 2 Replies

Advocate Bhartesh goyal (advocate)     01 October 2016

Issue legal notice to your friend and demand cheque amount,if notice is not complied with within stipulated period then file complaint against your friend.signature .differs also comes under the purview of N.I.Act.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     04 October 2016

I am not sure if NI-138 will apply. A PDC is a conditional promise to pay. If the amount becomes due A will have to give notice if B otherwise fails to pay or request A to encash the cheque. If B says that the cheque can be presented then it may come under NI-138. Or if B fails to respond to the notice and the cheque was presented at the end of the notice period then also NI 138 'may' apply. I do not know whether there are any judgments in a similar case.


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