Negotiable instruments act

Querist : Anonymous (Querist) 23 November 2011 This query is : Resolved
A and B entered into an Agreement to purchase land for which A made payments to B.
Thereafter, A and B mutually agreed to cancel the said Agreement and B agreed to pay the amount back to A. They executed MOU and as per direction of A, B issued cheques in favour of X and Y as well as A. These all details have been mentioned in the MOU which is signed by both A and B. The said MOU is notorised. The cheques issued to X and Y are dishonoured for insufficient funds.
Whether X and Y can file complaint against B U/s 138 of N I Act and whether the amount of cheque can be considered as legally enforceable debt or liability against B as the cheques are issued by B to X and Y instead of A AND to discharge A's liability towards X and Y.

Kindly guide me and please provide relevant citations if any on this issue. Thanks !

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Amit Minocha (Expert) 24 November 2011
yes complaint can be filed.

Third party debt cheques are also covered u/s 138 NIA

Advocate. Arunagiri (Expert) 24 November 2011
It is a legally enforceable debt.

Complaint is maintainable.

Shonee Kapoor (Expert) 24 November 2011
Agreed with experts.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

prabhakar singh (Expert) 24 November 2011
i too agree with experts .

Rajeev Kumar (Expert) 24 November 2011
I agree with experts

Sailesh Kumar Shah (Expert) 26 November 2011
Agree! No reason to differ.

Devajyoti Barman (Expert) 26 November 2011
Yes I agree too...

Arun Kumar Bhagat (Expert) 24 December 2011
It comes under Other liability. It is maintainable.

V R SHROFF (Expert) 24 December 2011
Agreed, complaint can be filed.

Third party debt cheques are also covered u/s 138 NIA

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