cheque bounce case
T.Srinivas
(Querist) 05 January 2010
This query is : Resolved
Respected experts,
one of my client given a credit by way of cash, he obtained a on demand promissory note in favour of him, one of the wittness has written a on demand promissory note, after some day the wittness has given a cheque to my client as part payment of the on demand promissory note on behalf of the creditor, subsequently my client presented to bank, and the cheque is bounced, now the question is can i file cheque bounce case against both the creditor and wittness.
Raj Kumar Makkad
(Expert) 05 January 2010
because the proceeding of 138 NI Act is purely criminal so it can only be filed against drawer of the cheque (witness) but you can mention all the circumstances in the body of the complaint.
If you file a suit for recovery then both can be sued.
Kiran Kumar
(Expert) 05 January 2010
i agree with Mr. Makkad, the complaint under S.138 NI lies against the drawer of the cheque only, but in your case the witness is not having any legally enforceable debt payable to ur client....so civil suit will be a better option.
T.Srinivas
(Querist) 05 January 2010
Thank u Mr raj kumar, if i state the circumstances of the above mentioned in 138 complaint the drawer of the cheque he may take advantage, like he may say he never took the money from my client and he issued a cheque only for the purpose of surety and for clearence of credit, then sir
T.Srinivas
(Querist) 05 January 2010
Respected expert,
can i file a 138 case with out connecting the on demand promissory note and the case only against the drawer of the cheque and seperate case for money recovery against on the basis of the on demand promissory note.
Raj Kumar Makkad
(Expert) 05 January 2010
No. You shall have to connect the matter of promissory note. He cannot take advantage as you presume because he is surity and surity is equally liable to pay. It is a valid consideration against which drawer issued you cheqye. without any fear move ahead.
T.Srinivas
(Querist) 05 January 2010
Respected raj kumar sir,
wittness issued a cheque for creditor non payment, he issued a cheque for part payment of the on demand promissory note, please clarify sir in on demand promissory note meaning of wittness comes under same meaning of the surety.
adv. rajeev ( rajoo )
(Expert) 12 January 2010
Even if surety is issued cheque to clear the debt of the principal borrower, he is liable.
adv. rajeev ( rajoo )
(Expert) 12 January 2010
A cheque issued by a person is a surety to the promissory note, but he issued a cheque to clear the debt of the complaianant. As such he is also liable u/s 138 of NI Act.
