U/s 138 NI Act

Querist : Anonymous (Querist) 04 October 2010 This query is : Resolved
A cheque was given to someone for security of loan before five year. The account has been closed before two year. Now that person filed a complaint U/s 138 NI act alleging the transaction with in six months.In these situation how and in what manner we can prove our defence.

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Devajyoti Barman (Expert) 05 October 2010
Was the cheque was post dated as the cheque becomes inoperative after 6 months from the date of drawing. Anyway, if the transaction ,in lieu of which the cheque was drawn is no more in operation then take that defence in the case.

Advocate. Arunagiri (Expert) 05 October 2010
Even if the account is closed the cheque dishonour case can be conducted. They will establish that the cheque is post dated, and you have closed the account before it is being encashed. The defense can be taken considering his witness and documents.

R.Ranganathan (Expert) 05 October 2010
This is a difficult situation. You have to prove it by producing all the evidences by proving the loan date, issue of cheque on that date and subsequently you had closed the account and the settled the loan if at all if you have settled it.

Daksh (Expert) 05 October 2010
Dear Anonymous,

Initially when the account was closed you could have put the other party to notice. Secondly at the time of reciept of Section 138 N I Act notice you could have elaborately put your defence forward. Now face the trial and prove to the court that no debt is due and payable and hence no case is made out.

Best Regards

Daksh

DEFENSE ADVOCATE.-firmaction@g (Expert) 05 October 2010
Even otherwise ac closed is no offense under NI 138 , it can be made out under IPC.

pawan sharma (Expert) 05 October 2010
if the cheque was gave for security of loan before 5 year. no case of NI Act. that is a case of civil natute, put your defance as all loan amount has beenpaid to him with suported documents.