Sec 138
nitin gatagat
(Querist) 14 September 2018
This query is : Resolved
Blank Cheque dated 21.9.2017 by company and bounced on 1.9.2017 for rs.7 lakh . Cheque stopped by me . As in mean time I returned some stock and bank guarantee for rs.4 lakh encashed by them on 29.8 2017
Is case sustained
Guest
(Expert) 14 September 2018
Case sustained or not has to be decided by the court of its own merits, not of any guess by anyone merely on casual query without going through the case related documents and background history.
However, you have to use one of the following two options:
1) Fight case on merits of the case; or
2) Settle amicably with the company.
Otherwise, stopping of payment of a cheque is denial of honour of commitment to pay the cheque amount to the holder in due course. That is an offence, if not specifically instructed the company well in time in writing not to present the cheque before stopping payment.
So, better get the case examined in detail by some local lawyer.
nitin gatagat
(Querist) 14 September 2018
Sir I had given notice to company also not to misuse my cheque before bounce khad postal receipt of receive
Dr J C Vashista
(Expert) 15 September 2018
Dishonoured cheque (blank) with "Stop payment" remarks attract provisions of Section 138 of the Negotiable Instruments Act, 1881 and drawer of the cheque is liable to be prosecuted and punished for double the cheque amount and 2 years imprisonment.
Consult and engage a local prudent lawyer.
Guest
(Expert) 15 September 2018
When you have given cheque for their use, where is the question of misuse and what could be the sanctity of your notice about misuse?
If willing for litigation, mere replies of experts may not help you. In that case, you may better hire services of some lawyer to fight your case, if willing for litigation. Otherwise, if yours is not merely an academic query, the wise solution for you is to settle the case amicably with the opposite party, as I suggested you in my previous reply. otherwise, the fate of your case has already been indicated in the wise advice of Dr. J.C. Vashista.
nitin gatagat
(Querist) 15 September 2018
Dear sir ;
I am asking you that my blank cheque filled for rs.7 lakhs by company dated 21.9.2017 and cheque bounced on 1.9.2018 .But in between these 10 days I had paid them 5 lakhs by bank guarantee and returned stock.. I don't know that they will utilize my cheque .. after receipt of all they put the cheque for clearing on 1 september for the cheque dated 21 august ..
nitin gatagat
(Querist) 15 September 2018
Dear sir ;
I am asking you that my blank cheque filled for rs.7 lakhs by company dated 21.9.2017 and cheque bounced on 1.9.2018 .But in between these 10 days I had paid them 5 lakhs by bank guarantee and returned stock.. I don't know that they will utilize my cheque .. after receipt of all they put the cheque for clearing on 1 september for the cheque dated 21 august ..
Guest
(Expert) 15 September 2018
Agree with Experts . Discuss with your Advocate and follow the procedures of serving legal notice and stop payment letter to bank etc
nitin gatagat
(Querist) 15 September 2018
What wrong in query .. what I am asking I thing u r not catching.. I know I need to face all legal process of 1e8.. my query is that 1} payment before cheque bounce I.E blank cheuque filled by complainant on 21.8.2017 and bounced on 1.9.2017 .. in between 2 payments done to them I.e.by transfer stock and bank guarantee encashment ..siMple answer this
Dr J C Vashista
(Expert) 16 September 2018
You have been obliged by experts adequate, nothing more to add. There is no point in dragging the issue on this platform.
Consult and engage a local prudent lawyer for better appreciation of facts/documents, analyse, guide and proceed.
Better to close/stop this thread.
Surrender K Singal
(Expert) 16 September 2018
Said two payments before cheque bounced would be taken note of by the Magistrate in your defence u/s 138. It may have been informed to the Payee in reply to the 15 days' notice after cheque bouncing before complaint is filed u/s 138 ? Better check all facts sequentially for proper defence
