Negotiable instruments act

Querist : Anonymous (Querist) 25 November 2011 This query is : Resolved
A and B entered into an Agreement to purchase land for which A made payments to B.
Thereafter, A and B mutually agreed to cancel the said Agreement and B agreed to pay the amount back to A. They executed MOU and as per direction of A, B issued cheques in favour of X and Y as well as A. These all details have been mentioned in the MOU which is signed by both A and B. The said MOU is notorised. The cheques issued to X and Y are dishonoured for insufficient funds.
Whether X and Y can file complaint against B U/s 138 of N I Act and whether the amount of cheque can be considered as legally enforceable debt or liability against B as the cheques are issued by B to X and Y instead of A AND to discharge A's liability towards X and Y.

Kindly guide me and please PROVIDE RELEVANT CITATIONS/CASE LAWS if any on this issue. Thanks !

Follow Query

Report Abuse

M.Sheik Mohammed Ali (Expert) 25 November 2011
yes, you can file a case as NI138 against them

Rajeev Kumar (Expert) 25 November 2011
You can file a case in 138 NI ACT

Shonee Kapoor (Expert) 25 November 2011
No reason to differ.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Guest (Expert) 25 November 2011
yes,u can file a complain against B, as he is liable for payment.

Rajeev Kumar (Expert) 25 November 2011
Agree with experts

V R SHROFF (Expert) 26 November 2011
Court will presume X & Y recd chq from B for legal liability of B. MOU will prove it against B. X & Y will succeed.