Mis use of cheque
minsal
(Querist) 25 November 2012
This query is : Resolved
Dear experts,
As a part of business transaction "A" issued a blank signed cheque as a security to "B".
After some time, "A" inform "B" that not to deposit the cheque he issued as a security, as he is not operating said bank account. he also inform "B" to return the said cheque with assurance to issue a new cheque of his other bank as and when demand by "B". "B" kept silence. "A" also informed his banker to stop the payment of the specific cheque.
After about a one and half month later, some dispute arose between "A" & "B" and in their correspondence, "A" once again remind "B" about the above mentioned instruction (for safety purpose) but "B" deposited the said cheque and the cheque returned unpaid.
"B" issued a notice u/s. 138 of N. I. Act. we have replied to the same.
My query is that can "A" take any action against "B"? under what section?
Thanks.
Raj Kumar Makkad
(Expert) 25 November 2012
Instead of taking any action against B, a should first get exonerated from the criminal complaint filed against him under section 138 of NI Act and only thereafter he can file suit against him.
