NI ACT
vinod bansal
(Querist) 04 March 2010
This query is : Resolved
R/Members
One man purchased petrol and diesel from the filling station of my client for a sum of rs 180000/- for his personal vehicles and later on give me a cheque signed by him in discharge of his liability for above stated amount.My client deposited the cheque in his account but bank dishonoured the same with a memo stating that this cheque requires a resolution for encashment,when i enquired all about this,i came to know that accused has given me cheque signed by him of a co operative milk society,i dont know in which capacity he issued this cheque,now he has refused to pay my client any amount.even i donot know he is concerned with above stated society or not,under which provision i can file complaint,NI Act or 420 IPC as i have listen that only in two cases NI Act is applicable one is insufficient funds second one is Exceed arrangement,Kindly help me
Parveen Kr. Aggarwal
(Expert) 04 March 2010
Yes. Complaint under section 138 of the Negotiable Instruments Act, 1881 is not maintainable in such a case because the reason for dishonour of cheque have no relation with insufficiency of funds. However, you can ask the person to get a resolution passed in order to make the cheque encashable. Still, if he fails to take necessary action, you may file a suit for recovery of the amount besides launching prosecution for commission of the offence of cheating.
Raj Kumar Makkad
(Expert) 05 March 2010
In the light of given facts, it is appropriate to file a FIR against him under section 420 IPC.
Guest
(Expert) 05 March 2010
your client may file the case for the offence under section 420 IPC.
