Negotiable Instruments Act Query
Daksh
(Querist) 01 September 2010
This query is : Resolved
Dear All,
If in a given situation when the complainant is having a cheque for Rs.10,000/- and he is claiming that indeed the legal liability qua the cheque is Rs.8,500/- only can he/she is legally entitled to file the complaint under Section 138 N I Act claiming the partial/a quantified sums of money or in the alternate it can be averred both in notice and in complaint that the accused should be made to pay the full consideration but the court should give to the complainant his Rs.8,500/- and rest should go to the exchequer as fine.
Kindly enlighten me.
Thanking you in advance.
Best Regards
Daksh
Parthasarathi Loganathan
(Expert) 01 September 2010
No part claim is permissible as NI Act stipulates only full consideration of the cheque drawn. If the same is allowed then there would be a situation where the drawer can contest against dishonour by the bank on account of shortfall in balance. Say, if his balance is Rs.5000/- and if he draws a cheque for Rs.6000/-, bank is bound to return the cheque with reasons " Insufficient Funds" Drawer would then contest on the grounds that bank can debit Rs.5000/- and credit the beneficiary and claim the balance of Rs.1000/- from the presenting bank
Daksh
(Querist) 01 September 2010
Thank you Mr.Parthasarathi Loganathan for your valuable inputs. It is indeed appreciable.
Best Regards
Daksh
R.Ranganathan
(Expert) 02 September 2010
I disagree with the expert Parthasarathi. It seems not acceptable at all. In the present situation first of all how this cheque for Rs. 10,000 has come into being when the amount due is only Rs. 8,500/- is not explained. If the issuer has paid certain amounts then the claim may be made accordingly stating that the issuer had paid 1,500 out of 10,000/- and the balance now is 8,500 though the cheque amount is 10,000/-.
Parthasarathi Loganathan
(Expert) 02 September 2010
I have opined only on the context of the Negotiable Instrument Act as to the Payment of cheque for a certain amount as against the balance maintained in the account of the drawer. In the present case whatever may be the contractual obligations between the creditor and debtor bank acts purely on the consideration as instructed by the drawer of the cheque.
