NEGOTIABLE INSTRUMENTS ACT

G.Nagi Reddy (Querist) 15 January 2011 This query is : Resolved
Dear sir,
i debted to a person and issued a Blank and post dated cheque signed by a person who is a cheque holder. but that person was died about 1year back. that account is joint account and at that time his wife also signed on that cheque and promissory note. now she is alive.

my question is can i file N.I.ACT and note a date on empty cheque before one month back only on the basis of her signature because that account is joint account.there is any difficulty in the case. please proper advise and refer proper citations regarding there.

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Amit Minocha (Expert) 15 January 2011
If the person had already signed along with wife and he died an yr back then you may face some problem. For NIA against wife you will have to claim that you were given a PDC of one year when he was alive,It will hold against wife . Howwver, you can file civil suit u/o 37 cpc for early recovery.

Guest (Expert) 15 January 2011
you have only option to file a suit for recovery of amount not for criminal proceedings

Advocate. Arunagiri (Expert) 15 January 2011
If the joint account holder had signed the cheque as well as the promissory note. The cheque bounce case is maintainable. Because the liability can be enforced on the surviving party.

You have to make it very clear, whether both the parties signed the cheque.

Whether the wife alone signed the cheque but presented after the death of the husband.

malipeddi jaggarao (Expert) 16 January 2011
I differ with the opinion of Mr.Arunagiri. Banks can not honour the cheque of joint account holders if one of the joint account holders is dead. When the bank prima facie do not have the right to honour such cheque, where is the question of cheque bouncing and case under Sec.138 of NIAct? I agree with the opinion of Expert Sri S.Ganesan. You have onlyoption to file a suit for recovery of account, but no remedy under NI Act.

DEFENSE ADVOCATE.-firmaction@g (Expert) 16 January 2011
Yes Mr Jaggarao , NI 138 not possible. Even in civil case he has to prove debt , otherwise no hope.

B K Raghavendra Rao (Expert) 16 January 2011
You cannot file a cheque bounce case under Section 138 of NI Act. One of the signatory to the cheque is not alive and hence the cheque is not valid. The moment one of the joint account holder dies, the account need to be converted to solo account or is deemed to have been converted to solo account. The only remedy you have is to proceed against the other signatory for money recovery in a civil suit.

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