Issue with 138 of ni act

sree 9491505984 (Querist) 20 July 2013 This query is : Resolved
Hi all,

A owe some debt to B for the services rended to him. B did services by geting some materials from C. Hence B requested to A that please pay some amount to C directly. Accordingly A made a cheqe infavor of C and send it across. It got bounced with no funds.
Now can C file a case 138 of NI Act on A. Main thing is C has no debt directly from A. only he sent some material to B. Please reply..

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adv. rajeev ( rajoo ) (Expert) 20 July 2013
He can file the complaint u/s 138 of NI actC, but he has to prove to clear the debt of B cheque was issued

ajay sethi (Expert) 20 July 2013
has C issued legal notice ? the cheque has to be issued in discharge of debt due and payable ?has A replied to said notice?

what is the stand taken in reply to legal notice?

prabhakar singh (Expert) 20 July 2013
A classroom query.Unless it was a tri party arrangement no complaint would lie .

Advocate Bhartesh goyal (Expert) 20 July 2013
Yes C can file complaint of cheque bouncing against A as A after having taken the liability of B to pay the due amount to C issued the cheque to C so A is liable to be prosecuted.

Rajendra K Goyal (Expert) 20 July 2013
Complaint can be filed. The complainant has to prove that the cheque was for consideration of the debt of B.

prabhakar singh (Expert) 20 July 2013
The complainant has not only to prove that A owed B but also that B owed C(the complainant)and A,B,C mutually agreed for this arrangement was my answer and still is.

prabhakar singh (Expert) 20 July 2013
It is not a case where cheque was issued by A in name of B and B endorsed it in name of C making him holder in due course so tri party agreement oral or written is necessary.An arrangement onlybetween A and B is not enough unless C was involved in the arrangement.

DEFENSE ADVOCATE.-firmaction@g (Expert) 20 July 2013
Drawer of the cheque is also liable under cheque law , it is settled position by APEX COURT.

R.K Nanda (Expert) 20 July 2013
nothing to add.

Raj Kumar Makkad (Expert) 21 July 2013
You have rightly been advised in repeated posts by some of the experts.

Issue with 138 of ni act

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