NI Act related query
Rameshwar Prassd
(Querist) 31 July 2017
This query is : Resolved
One legal problem.
Employer takes undated signed cheques from employee while giving the appiontmet .later on when employee leaves he fills the date amount in liue of notice pay and present in the bank and get bounced and after that filed the case in NI act under sec 138 and recovered the amount as desired by the employer.
My question is to wheather it is correct legally.
What is the protection of employee's.because of unemployment problems person gives the cheque and take job for bread and butter.
Secondly now a days this is become regular trend of employer .
How to get rid of this.
Could any one bring this problems to the finance ministry for relaxing NI act specifically where the employer and employee relations exists.
Requests all professional if they know some decided case in favour of employee ,pls let me know.
Thanks
P. Venu
(Expert) 01 August 2017
Certainly this is a wrong practice. The ex-employees should not succumb but should resist by proving in defense that there was no legal debt.
M V Gupta
(Expert) 02 August 2017
Definitely it is a pernicious practice. But the resistance to it should come from the job seeking persons only. By giving such cheques they are contributing to such practice. Only a bold person can expose such employers and get them prosecuted.
Hemant Agarwal
(Expert) 07 August 2017
1. Cheque given for "Security" (any type) purposes is non-prosecutable under the N.I.Act. Security cheques are not covered /classified as "debt or liability", as is mandatorily required under the N.I.Act.
2. Employer can be criminally prosecuted for Cheating and Extortion, for forceful demand of Cheque and Deposit of the same.
Keep Smiling .... Hemant Agarwal
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