n.i.act

Shekhar Warhate (Querist) 11 September 2009 This query is : Resolved
my party is bank, a person borrowed the loan from my bank and not paid the loan amount. person issued the cheque in the name of bank of joint account of person and his father cheque bounsed with funds insufficient. after some days the person who borrowed the loan is died,bank give me the bounced cheque for sending notice u/s138 of n.i.act. is he liable for the loan of his son due to joint accout and is he come wihtin the criateria of n.i.act tell me with ciatetionriven

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Shivasurya (Expert) 11 September 2009
Bank cannot file either criminal complaint of civil suit against the father of the borrower of loan. The below points are against the bank
1. The loan was given to the son only and his father is not stood as guarantor for the loan.
2. The disputed cheque was given by the borrower only before he dies, hence, the bank can prosecute him only even the disputed cheque issued from a joint account.
3. As per your querry, the alleged cheque was given by the son/the borrower before he dies and it was bounced after his deathriven

Adinath@Avinash Patil (Expert) 11 September 2009
If Bank have any documents to show that father of borrrwer is responible for is son;s loan,e.g.consent letter etc then your bank can file complaint u/s 138. otherwise father is not legaly enfociable liability of his son's loan due amount.Your bank can't procecute u/s 138.of N.I.Act.
But it is open to your bank to file civil suit for recovery of loan due amount, if he becomes legal heir of his son.riven

Raj Kumar Makkad (Expert) 12 September 2009
At the time of opening of joint bank account, the father of borrower had undertaken that the account shall be run by his son/by him/jointly etc. etc. This means he had undertaken the liabilities attached with the running of the account, issueance of the cheques etc. If any cheque in the discharge of any liability had been issued by his joint account holder (nnow deceased) and that cheque is not honoured, the surviving account holder cannot be exenerated from his joint liability of issuance of cheque may be issued without his knowledge hence complaint is maintainable. Issue notice as desired by Bank on these lines.riven

Bhumik Dave (Expert) 13 September 2009
Father is neither responsible for criminal liability nor for civil.riven

Raj solanki (Expert) 13 September 2009
yes you can file a case against his legal hair in civil court, not in criminal case in u/s-138 n.i.act
riven

KUMAR JAGADEESAN (Expert) 15 September 2009
I do not think that any action would lie against the father because of the only reason , he being a joint holder of the account. To invoke section 138 NI Act there should be a debt and a cheque has to be issued against the same. Since father is not the borrower how can one take action against cheque issued by the son.

J.KUMAR
Hyderabadriven