Under Section 138 of N.I.Act
Satyender Sharma
(Querist) 04 May 2011
This query is : Resolved
I had booked a plot with M/s PSG Developers & Infrastructure Limited by paying conderable amount. However, the builder was not having the land for the project. He gave me two cheques, one for my deposited amount and other for interest accrued on it. The said cheques on depositing with Bank returned with the remarks 'Account Blocked'. It seems that account was blocked under some orders. The builder has not received my notice and have not paid the amount.
Whether the builder can be prosecuted under Section 138 of Negotiable Instrument Act. If yes, please quote case(s), settled by courts.
Any other relief to me ?
Subhash Chandra
In continuation of my querry for prosecuting builder under Section 138 of N.I. Act on the basis of cheque bounced due to ‘Account Blocked’, it is added that Notice was served with in time limit under the said Act and the said Notice was returned with the remarks that addressee not available. Kindly quote some cases decided by Court for ‘Account Blocked’ and other relief available.
Querry from : Subhash Chandra
Basavaraj
(Expert) 04 May 2011
Sharma before going to say something pls confirm that what is the date cheque bounced and when did u send notice to him? what is the reason for not accepting the notice?
These things you need to disclose. There will be a 30 days time to send notice.
There is no doubt about applicable of section 138 and he can be prosecuted. Hence need to quote any settled laws.
Advocate. Arunagiri
(Expert) 04 May 2011
You can not prosecute when the cheque is returned for "account blocked".
You can go for civil case for money recovery.
bhavin
(Expert) 04 May 2011
i am agree with Mr.Basavaraj.
As per the act demand notice must be issued by the complainant on the accused's last known address, it is not necessary to served demand notice.
Guest
(Expert) 05 May 2011
Sec. 138 of NI Act applies only to the cheque dishonour cases on account of insufficient balance, but NOT on account of blocked accounts. Blocked accounts may be having sufficient funds to pay, but cheques not honoured due to blockade of accounts, which can be for any reason, may be by the Income Tax Authorities, or by the court of law in some case.
Since the builder is liable to pay the amount of cheque he can be prosecuted u/s 31 of the NI Act.
