138 NIA

Querist : Anonymous (Querist) 16 May 2011 This query is : Resolved
hi all,

I am a student provided situation fr me is to defend the respondent-

Situation is that the Respondent made 2 payments thru cheques wen petitioner went to encash 2nd cheque Resp. stopped the payment 'Payment Stopped by the Drawer',,n now Respondent got notice for d due payment within 15 days,,,Resp. crossed the time,,,,what are the sollutions,,,???,,,how to defend Resp???

Thanx

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M/s. Y-not legal services (Expert) 16 May 2011
Without knowing the fact how can we discuss about the defence points? And whats the reason behind the stop payment on the subject cheque?

Guest (Expert) 16 May 2011
query is incomplete no other information is given

s k s k sarma (Expert) 16 May 2011
if the cheques are issued not for legal enforceful debt it was issued for advancement of money by respondent to petitioner then even stop payment of respondent will not attract 138 NI Act. the respondent is not liable for punishment. here you have to see that in notice what allegations the petitioner is made. when the respondent establish that the cheuqes were issued to petitioner for advance of amoutn from him and he executed promissory note or acknowledgement receipt of cheques towards debt,then u have strong case to defend respondent. the petitioner is liable for cheating and fraud.