prashanth 30 November 2015

Prosecution u/s 138 of ni act

Hello Advocates, I had taken personal loan about 7 years ago from a private bank and could not repay after few installments due to various reasons. At the time of loan sanction, I had given 5 cheques with only my signature as secuirty. Now bank people have deposited those cheques and it got bounced. Now they have filed crimnal case aganist me under section 138 of NI Act. My question is now how to prove that I had given cheques only for security purpose and not for discharging legal liability of dischargin debt? They have not issued statutory notice as required under the law after cheque was bounced. I request you to help me on this.

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5 Replies

Adv. Yogen Kakade (+ 91 9225510883) 30 November 2015

Hi,

As the bank has filed a suit against you, then it is bank's liability to prove the purpose for which the cheques were issued.

You also have to see the clauses of the agreement you have signed while obtaining the loan.

While defending yourself, clearly mention that the cheques are not written by you and blank cheques have been fraudulently taken, written and depositied by the bank. Let the bank produce their authority or right to deposit the cheques without your knowledge.

Adv. Yogen P. Kakade

Jurycon Incorporation

Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in

prashanth 30 November 2015

Thank you so much Adv. Yogen P kakade for your swift reply. I understand from various case laws that I, being the accused, need to establish beyond resonable doubt that the cheques given by me at the time of availing personal load are for security purpose. Now If i give my oral evidence, whether it will stand in my favour? Could you pls advise or throw some input on this pls?

adv.raghavan (Advocate,9444674980) 30 November 2015

Without going in to the merits of your case, i would like to clear certain things. 1, cheques issued for security or as security purpose do attract 138, the onus is on you to prove that .2, You can dispute only the material alteration in the cheque, if at all anything had happened of that kind. Otherwise it will be counter productive.So seek opinion from seasoned lawyer in criminal cases and try to defend the same.

Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law) 01 December 2015

Remember just because the cheques were given by you initially , does not mean that the same weee security cheques . If at all the bank had declared that the same shall be presented at the time when the amount became due , then they are no Longer security cheques and hence attract 138. Elaborate on your problem With a good lawyer 9999931153

SAINATH DEVALLA (LEGAL CONSULTANT) 01 December 2015

The bank is right in proceeding against U u/s 138 NI Act.Their legal officer would have certainly issued a statutory legal notice for the liability and the bounced cheques.No bank will proceed blindly either while giving a loan or later on proceeding legally.Hence U have to fight out UR case only on merits from UR side,if there are any.