N I Act
shalini
(Querist) 03 July 2011
This query is : Resolved
Where in NI Act case, A witness says in his testimony that loan was given to the accused in his personal capacity but cheque issued to him by the accused in discharge of that loan was given in capacity of proprietor. And also states that he has no idea whether the accused does business in the name of that proprietary concern or not. In that case whether accused will liable for dishonoring that cheque in his personal capacity?
Advocate Bhartesh goyal
(Expert) 03 July 2011
Yes,it will be persumed that cheque was issued to discharge the debt and liability unless contrary is not proved.It is hardly matter that cheque was issued in capacity of proprietor.It is material that cheque should have been signed by the accused.
prabhakar singh
(Expert) 03 July 2011
law presumes that cheques are issued for consideration
Sachin Bhatia
(Expert) 03 July 2011
Yes accused will liable for dishonoring that cheque in his personal capacity and it will be persumed that cheque was issued to discharge the debt and liability.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 03 July 2011
Still legal liability has to be proved. More ever if doubt can be raised about whether the accused did have or did not have any dealings in the name other than his personal name the whole scene will cannge.
Most important point is in what circumstances the loan was given and if the complainant is not conversant with the nature of constitution of business there can not be any truth in the dealings.These are finer points and it depends on the advocate of the accused to take its advantage.
Please search there is definitely one SC citation on similar lines.
