Sambasiva Rao (Nil) 14 June 2014

Dishonor of cheque

Dear All

1. Mr.A has taken money of Rs.1,00,000 from Mr.B and orally promised to secure job.

2. After some time, Mr.B asked for return of money and succeeded in getting PDC for the aforesaid amount.

3. The cheque was dishonored on submission to bank as the funds are insuff.

4. Mr.A was served with legal notice and filed the complaint in the court

5. Mr.A deposited Rs.35,000/- in Mr.B's account after receiving the notice and another Rs.15,000/- was deposited after the complaint was lodged in the court

6. Mr.A, accepted before Magistrate that he has taken money from Mr.B but not for the purpose stated by Mr.B

7. Mr.A also accepted that he has issued cheque

POINTS FOR DISCUSSION

1. Whether there is any legally enforceable liability in between Mr.A & Mr.B

2. Whether the transaction of oral promise to secure job and taking money without any evidence create any legal liability

3. Whether the acceptance of receipt of money and issue of cheque before the magistrate creates legal liability

4. Repayment of part amount after receipt of notice amounts to creation legal liability

5. Whether sec 23 of the contract act has to be verified or not

Please discuss with relevant provisions

Reply Follow

5 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 15 June 2014

The party is binded with legal notice. Whatever it is they have to go as per legal notice. Oral evidence is not much importance here.

advocate Avdhesh chaudhary (advocate/ legal consultant) 15 June 2014

hopefully, you facing a complain case under 138 of NI act. if you have repaid money you should have done it at withdrawl of case. for brief you may call. ADV. AVDHESH CHAUDHARY, 09891507137

Aashish George (lawyer) 15 June 2014

i dont know whether you are a or b?
if you are a, u will have to make the payment if you have issued the cheques in question, if it is in your account, if you have got the legal notice, additional blunder created by you, you accepted that the cheque is yours (i am hoping it was at the time of framing of notice) also gave the reason x,y,z. in short, you will pay and if your luck is really bad, you will pay also and go to jail also. (now thats out of the way)

if you are b, you will get the amount mention in the legal notice and cheque, if the money was given as a bribe to secure government job then there is no legally enforceable liability of Mr.a towards you. you wont get the money, the amount paid at the time of legal notice will be considered by the judge if ample proof is supplied for the same.

i must stress here, that my seniors know better than me, so, they can decide whether or not am i right or wrong.

R Trivedi (advocate.dma@gmail.com) 16 June 2014

6. Mr.A, accepted before Magistrate that he has taken money from Mr.B but not for the purpose stated by Mr.B

How and at what stage and in which form..... Mr. A accepted before magistrate ?

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 17 June 2014

If a cheque was issued by A for Rs.1,00,000/- for clearing a debt and the cheque bounced, it will certainly attract Sec:138 of NI Act. Once A has issued a cheque and it is not for clearing a debt he has to explain why he issued the cheque.

When B filed case against A, he would have told the court what for he had paid A, to return which A issued the cheque. The purpose would have been a legitimate one. A admitted that he had received the amount and to return it he issued the cheque. But he denied the purpose stated by B, for which he received the amount. He must have then stated what was the other purpose for which he received the amount. Such other purpose also should have been a legitimate one.

Under the above circumstances B is entitled to get a full refund and A can be sent to jail. It is of no consequence the exact purpose for which A received the amount so long as it was a legitimate debt as admitted by A.