Cheque bounce
Surinder Singh
(Querist) 24 December 2016
This query is : Resolved
Can you advise on the matter of 138 NIA,here it is a Proprieter firm and cheque was signed by authorized signatory.Now proprietor has compromised with complaint.what will be the fate of signatory, can he be procecuted alone further.Can you please give some citations.
V R SHROFF
(Expert) 24 December 2016
If cheque belong to Proprietary firm, signed on behalf of firm; he can reply the Notice , if received, clarifying this matter of compromise. Matter over.
Rajendra K Goyal
(Expert) 24 December 2016
If firm has compromised, signatory who signed on behalf of firm escape liability.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 24 December 2016
Signatory of the cheque is liable, he or she can not escape.This is the law confirmed by APEX COURT in many recent judgments.
Whether proprietor has compromised with other side is not relevant. The basic law is cheque bounce is crime and issuer is liable.
On the other hand firm can take the stand that issue of cheque was not legal far want of proper legal liability.
Surinder Singh
(Querist) 24 December 2016
There is a proper letter of authorization of signature.Complaint has said that he has given amount Rs 3 lac in the hand of Proprieter and Proprieter instructed to manager that is the signatory to give cheque for Rs 3 lac.And now after a virdect of one year punishment and Rs 3 lac penality each Proprieter and signatory in lower court the Proprieter has compromised with complainent.However the lower court has said that there is no legal liability of the manager.
Surinder Singh
(Querist) 25 December 2016
Accused signatory is my brother
Guest
(Expert) 25 December 2016
Dear Surinder Singh,
The court has rightly said that there is no legal liability of the manager, as an authorised signatory.
Authorised signatory cannot be prosecuted, as he acted on the authority of the proprietor.
Surinder Singh
(Querist) 25 December 2016
But sir after saying this....the lower court has punished him in its virdict.....matter is under appeal in session court.
Surinder Singh
(Querist) 25 December 2016
Both accused has appealed in court where Proprieter has compromised with complainent..and court has accepted,now i just want to know wether court can technically prosecute signatory alone further in this case..and if no then can somebody give me some case references which can help me out.
Guest
(Expert) 25 December 2016
Mr. Surinder Singh,
By the way, what is "TECHNICAL" prosecution, as you have stated?
Also, what do you propose to do with the case references and why you expect the experts to do home work for and on behalf of your own paid lawyer in the prosecution as well as appeal case? Why you have not asked for case references from your own lawyer?
Your initial query has appropriately been responded by the experts. But, now demand of case law, in itself, reveals that yours is not a real problem, but an academic query you want to find answer for.
Surinder Singh
(Querist) 25 December 2016
Dear Sir, I used technical word just to refer according to law...I may be wrong to use this word.My intention is just to help my lawyer,he is trying but there are very few references for such type of case.
That's why I am trying to seek help from experts like you,no matter if it is chargable.
Guest
(Expert) 25 December 2016
Your lawyer can take help from his co-fellows in the court to find the case references.
Even if you want case references on charge, you will have to show the whole bunch of your case including the judgment in appeal case to any of the legal expert, as any case law cannot be applied on any type of the case. That depends upon the nature, characteristics and the circumstances of the case related event.
Guest
(Expert) 25 December 2016
You are welcome.
