NI ACT, can a cheque can be transfered to 3rd party

MOHAN ILAYARAJA (Querist) 29 January 2011 This query is : Resolved
Dear Experts,
my client has issued a blank undated cheque for Rs.100000/- and he had paid the entire amount along with interest and got receipt without mentioning the purpose. After that my client insisted to return the cheque but the holder gave reply that it was misplaced and so my client had made stop payment in the month of Oct, 2010. Now on 17th jan, 2011 a third party (sister of the holder) has presented the said cheque claiming an amount of Rs.5,00,000/-. Pls give suggestions. Can i initiate any criminal proceedings against the both, if so under what section. Pls also provide any valid point to reply the 138 notice. and further what meant by holder in due course.

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DEFENSE ADVOCATE.-firmaction@g (Expert) 30 January 2011
Even if they file case , legal liability has to be shown.

Ahmed Daud Girach (Expert) 30 January 2011
No amount as shown has beeen taken as loan there is no legal liability of the amount there is no legal debt sustaining and no relation of debter-creditor exist so not at all liable for amount. i am filing fir against you .Then file fir against them for fraud and 420

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