Regarding u/s. 138, 420

Dharmesh A Gandhi (Querist) 23 May 2012 This query is : Resolved
My client is builder and had some cash finance without any record from party during 2005-06. The financer had taken Blank Chequs duly signed by my client with out date. Amount and party's name. Since the finance had already been paid my client is entitled to have cheque from financer. Instead of returning cheques he is thretening to deposit cheques and filed complain u/s. 238, 420 now. In fact the claint had closed his business and Bank operation. Though The Bank account had not been closed but running with Minimum Balance. Is it Possible to breach of section 138/ 420..? Can he filed complain..? Please guide what to do..? Thanks.
Awaiting of your reply.

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ajay sethi (Expert) 23 May 2012
money advanced by cash so no proof . no receipts .

if blank cheque had been issued ask your client to write letter to financier pointing out following blank cheques given without mentioning date , amount , name of party . ask him not to deposit cheque .

send letter by regd post AD

blank cheque is no cheuqe . if amount , dates , name of parties filled in it maounts to material alteration of cheque . no case under 138 NI maintanable

SAINATH DEVALLA (Expert) 23 May 2012
In addition to Sethiji,

Money given by cash and repayment made by cash has no bearing legally.Now that he has not deposited the cheques and only threatning you,mediate along with some wellwishers and close the matter.As the cheques are blank,you can fight your case,if you can engage an efficient lawyer,experienced in NI Act.

DEFENSE ADVOCATE.-firmaction@g (Expert) 23 May 2012
Blank cheque with signature is unguided missile and complaint / case can be filed.

But what this but any cheque bounce case can be won by accused . There are easy simple and sure methods since complainant even banks, NBFC S make no of mistakes in over confidence.

So bid your time and be ready to fight it out in court, you will surely win.

Surendra Gupta (Expert) 24 May 2012
The Financier will have to prove the consideration against which cheques were issued, which may be difficult for him

V R SHROFF (Expert) 24 May 2012
Close those accounts.
after that issue notice to financiers to return those cheques collected by him without consideration in the year 2004-2005.

This will serve full protection against any 138/ 420 .
Limitation, consideration as well as bank closed a/c , all three pts will be covered.
Also mention in notice, you never meet, nor delivered any cheque in last 3 years.