hemal (ceo) 29 July 2015

Case u/s 138

sir

my brother issues so many cheques witch he owned for busiess(for this he made promosery note), but he got loss in business and he also file insolvancy pitision.he also issued cheque in his wife name cheaque signed by his wife.what will heppaned u/s 138 he does not have any money.

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Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 29 July 2015

What is stated under Section 138 will happen provided the complainant proceeds as per Section:138. The magistrate will decide if you plead insolvency etc. in the court. If cheque is issued in wife's she can plead that she had no legally enforceable liability of her own. But then Section 139 will take over and she will have to explain why she issued the cheque in the first place.

hemal (ceo) 30 July 2015

thanks sir

but i want to know if person filed insolvansy pition and than after if cheqeq returned case u/s 138 will admited?

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 30 July 2015

Only court can answer your question. Section 138 has a civil as well as a criminal part. Your liabiltiy to pay the amount is the civil part. By giving insolvency petition you may get out of this. But there is also a prison term. Only a court can decide on this. I do not know whether there is a pass judgment on a similar case.