URGENT ADVISE NEEDED:stop payment cheque
RAGHAVVVVV
(Querist) 21 September 2010
This query is : Resolved
Dear all experts
My father was threatened of dire consequences and was forced to issue a cheque undated of Rs. 16.45 lacs to a company.When my father regained his senses,he immediately went to the Bank and stopped the bank for making the payment before the cheque was presented.The company then filled the date on his own,and presented the cheque for payment.but the cheque was returned by the bank saying "stop instruction".Now company has send us a notice to pay the entire amount within the 15 days otherwise they will file a suit under section 138 if N.I. Act which means either pay twice the amount or face 2 years punishment!
Please advise whether the company has legal right in doing so as mentioned above?
Also the cheque was made to sign on threatning basis but stopped immediately by my father?
Is this is not enough to protect my father from proceedings of section 138?
DEAR ALL EXPERTS
PLEASE ADVISE HOW CAN WE SAVE OURSELF FROM THIS SHREWD COMPANY?
THANKS AND REGARDS
Daksh
(Expert) 21 September 2010
Dear Mr.Raghavvv,
To protect your father from the initiation and prosecution of Section 138 N I Act complaint you have to take premptive action being lodging complaint in writing against the company which has forced him to issue a cheque. Secondly in reply to the notice your father has recieved you can enumerate the facts and circumstances for which reason "neither there is any admitted debt" nor there was any reason or cause of presenting the cheque in question. In the fitness of things you may take professional advice of some seasoned/experienced counsel who may be in a position to help you out in a better professional way.
Best Regards
Daksh
R.Ramachandran
(Expert) 21 September 2010
Dear Mr. Raghav,
The matter does not seem to be so simple as you narrate here - that some one came and forced your father to sign a cheque for Rs. 16.45 lakhs but undated,and then your father regained consciousness and went to the bank and stopped payment of cheque.
The crucial question is how to prove that there was coercion/threat from the company - did you lodge any police complaint? And in any case, how any company can come and get a cheque signed and that too for Rs. 16.45 lakhs (not any other figure) without any reason whatsoever.
A company or for that matter whoever has a signed cheque which got bounced have a right to invoke Sec. 138 N.I.Act. In the notice u/s 138 N.I. then can only ask for the amount of money represented by the cheque and not twice the amount etc.
However, your father also equal right to defend himself.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 21 September 2010
Yes Nr Ramchanran has put the real position but still for NI 138 you can escape since stop payment is no offense.
Raju Ramparag Gupta
(Expert) 21 September 2010
Dear Raghav,
why not approached the police when the company officials threatened your father to issue cheque.
criminal action can be taken against the company and its officials for threatening to your father and forcibly taking signature and cheque.
As far as of 138 Cheque bounding case, if there is a legal enforceble liability on your part than the company can take cognizance under section 138 of N.I. Act
Ajay Bansal
(Expert) 21 September 2010
PLEASE TELL ME HOW MUCH MONEY WAS PRESENT IN YOUR FATHER'S ACCOUNT WHEN HE WROTE THE BANK FOR STOP-PAYMENT.
Devajyoti Barman
(Expert) 21 September 2010
The Company can definitely initiate action u/s 138 of NI Act. Now if he signed that cheque under duress and coercion then you immediately file case for extortion otherwise your father could not do much.
Raj Kumar Makkad
(Expert) 21 September 2010
I haave similar opinion as of Ramchandran.
