Section 138 of n.i.act
Naveen Kanth Dasari
(Querist) 04 December 2012
This query is : Resolved
Hello Sir,
I am well aware with the procedure to file a cheque bounce case in the court of Law, but the only doubt i have is, once i use to do business and out of which i earned a good income and even i have filed tax returns in time.
I had a friend who also did the same nature of business, but we were not partners. So because of the same nature of the business we had a good relation and in turn my friend use to ask me money in several occasions according to his need to develop his business, for which i use to give him money whenever he asked as i had trust in him. But there was a point of time when the amount which i have given to my friend reached to 10 lakhs and when i asked he issued to cheques amounting to 5 lakhs each and also executed a promisory note, but there was no signed agreement between us. But both the cheque got bounced.
Now my question is:
1. Is it necessary to show source of income, coz i never gave him the money from my current account, but i have only given him the money from my savings account after withdrawing the cash from the bank.
2. I cannot show some of the money in my IT returns as some of the business was in black. So is it necessary to submit my IT returns in the court?
3. What will be result of my case? If i do not disclose certain facts.
Raj Kumar Makkad
(Expert) 04 December 2012
You know the the cheque prima-facie proves a lawful debt towards the accused but the same is rebuttable so once a question is raised by the accused person about having no liability, it is upon the complainant to discharge his liability to prove. Saving is a good plea but it also requires to be shown in returns once a person files such IT returns. Suit for recovery should also be filed which do no require such technicalities. You should file both suit as well as complaint.
K.K.Ganguly
(Expert) 04 December 2012
1) In the instant case you shall have to prove that he had issued you two nos. cheques against his dischargeable liabilities. This proving of dischargeable liabilities is very important,
2) I hope you have already touched upon his liability to be discharged while making the promissory note signed by him,
3) Normally source of income is not asked till the other side refuses to accept the liability & claim that the promissory note & cheques bear his forged signature & you are not capable of paying so much of money as per your i.T. returns,
4) Even against the above statement, you can show temporary loan etc. from other source which can be dealt with later on.
JANAK RAJ VATSA
(Expert) 04 December 2012
there is no need to worry about the source of money on your behalf. it may be your savings, loan , sale of property, gold items and so on.
Raj Kumar Makkad
(Expert) 04 December 2012
Even though the source of money is generally not questioned but it can be so it is good to be well prepared for facing this question.
