Information regarding section 138 of negotiable inst. act.

Priyesh (Querist) 19 August 2017 This query is : Resolved
Bank has filed case against my uncle u/s 138 of N.I.Act on the basis of cheque accepted by them at the time of sanctioning loan because my uncle loan was unpaid on due date. Now my uncle settled his loan account with the bank and put a settlement letter of loan account in the court. But court ordered and make a penalty of 15% of cheque amount. My uncle has arranged money form here and there to pay the loan of Bank. Now his economically condition is not good. and the amount of penalty is too high approx. Rs. 1,20,000 because the amount of cheque was Rs. 8,00,000. Please suggest me what to do in this situation?

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Rajendra K Goyal (Expert) 20 August 2017
Either go for appeal or pay the penalty.

Guest (Expert) 20 August 2017
Your uncle's own lawyer can guide you better. Have not you asked this question to his lawyer? If not any specific reason?

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