cheque bounce
Querist :
Anonymous
(Querist) 24 June 2011
This query is : Resolved
I was signed a mou with an educational institute for franchise and gave him the cheque of Rs 150,000 and after that i m getting the negative report about that company so i was back out and send the e mail to company about cancellation of franchise but they present the cheque it was bounced, and they also send me a legal notice for cheque bouncing @138, My question is that i never used the company brand name or any other activities on the name of company, so which type of case i can logged against company and in both cases which case is more strong.
Querist :
Anonymous
(Querist) 24 June 2011
Pls Reply me for this query.
Guest
(Expert) 24 June 2011
the cheque does not relate with what you have used the company or not? you provided the cheque for some security reason and not in any other way and if the company made the agreement with you for the payments than you have to pay that and if you does not used the company in any manner than you can reply in you answer that the cheque was to start the dealing and now i does not want to continue with the company
Advocate. Arunagiri
(Expert) 24 June 2011
The amount is not a legaly enforceable debt, so dont worry, no case against you.
Kirti Kar Tripathi
(Expert) 24 June 2011
When you cancelled the franchise and the said cheque was issued in pursuance of said franchise. The liability what ever is accrued is due to cancellation of said franchise, which of civil nature. No liability is on account of said cheque is enforceable under Section 138 of NI Act. So do not worry. But get ready for defending Civil suit.
prabhakar singh
(Expert) 24 June 2011
i am of the view that you can not stop them
from proceeding under Section 138of NIAct,
but you have cogent and valid ground to
rebut the legal presumption of Section 138 of NI Act,since cheque was issued in pursuance of said franchise which you have not used.breach of contract is the only cause
of action arising here to both of you in my
view.
Advocate Bhartesh goyal
(Expert) 25 June 2011
Since the cheque has not been issued to discharge the liability or debt,it was issued in persuance of said frachise which has not ever used by you so don't worry and reply the notice.
