Rebounce cheque of account closed
Niny
(Querist) 11 January 2012
This query is : Resolved
computer supplier was issued a cheque against deliver of computers, it was returned with remarks bank account closed.
can he proceed under Section 138 of the Negotiable Instruments Act, 1988.
citation if any..
Guest
(Expert) 12 January 2012
Why all are asking citations? Is there is no provision for 138 for account closed? Kindly read the sections it is clearly attracting the penalty.
Niny
(Querist) 12 January 2012
Ganeshan sir, kindly tell me can i send legal notice to him u/s 138
R.Ramachandran
(Expert) 12 January 2012
Dear Mr. Ganesan,
Can you please indicate, according to which phrase in Sec. 138, the closed account attracts penalty?
R.Ramachandran
(Expert) 12 January 2012
Dear Niny,
You have to find out from the bank as to when was the account closed. Once you know this, you can find out whether the account was closed after issuance of the cheque or even before issuing the cheque to you.
If the cheque was issued to you after the account had been closed, then Sec. 138 does not attract. Only Section 420 would get attracted.
If the account was closed after issuance of the cheque, Sec. 138 will get attracted. You can issue the notice u/s. 138. You don't require the citation at the time of issuing the notice. However, you will get the citation in due course.
Advocate. Arunagiri
(Expert) 12 January 2012
Even if the account is closed, if the cheque is deemed as returned for insufficient funds only.
You have a case. Proceed with sending notice.
V R SHROFF
(Expert) 12 January 2012
Dear Niny,
Yes, Proceed with sending Notice, and decide after Reply.
You have 3 options
1] 420 IPC
2] 138 N I Act
3] civil suit for recovery of money for sale of goods if you have delivery challan and other doc of Purchase order
R.Ramachandran
(Expert) 12 January 2012
Section 138 says: "Where any cheque drawn by a person on an account maintained by him with a banker..."
If the Account was closed, but cheque was issued subsequent to the closure of Account, 138 will not at all apply.
That is why I said, the date of closure of account - whether it is prior to the date of cheque or subsequent to the date of cheque - assumes importance.
I agree with Mr. JSDN that complaint under sec. 420 will involve lot of evidence. But because of that reason, the case cannot be brought under Sec. 138.
Deepak Nair
(Expert) 12 January 2012
Now the query is sufficiently answered by the experts.
Raj Kumar Makkad
(Expert) 12 January 2012
Much has already been advised and it shall be enough in my view.
Shonee Kapoor
(Expert) 13 January 2012
nothing more to add.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
prabhakar singh
(Expert) 13 January 2012
Nothing more required now.Things are lucidly explained to you.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 12 January 2012
