138 ni act

G.Padmanabhan (Querist) 18 December 2012 This query is : Resolved

Sirs,

One finance corporation had filed a case under 138 NI act against one of its borrowers. Subsequently, the loan account was assigned to another company. Can the successor prosecute the case, standing in the shoes of the original lender?. What are the steps required to be taken by the successor to be able to prosecute the case. The cheque in question was issued in the name of the original lender.

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Raj Kumar Makkad (Expert) 18 December 2012
The subsequent company has taken over the entire assets and liabilities of the earlier company which is also lender in the given case so it has inherent power to prosecute the accused under NI Act.