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The Neogitiable Act 1881

Guest (Querist) 02 April 2009 This query is : Resolved 
what is the liability in case of accused issued a Bearer Cheque to the Complainant as an friendly cash?????? will the accused punised under NI Act 1881
Neeraj Arora (9897136755) (Expert) 02 April 2009
No accuse can not be punised under 138 N.I. Act if the accuse has issued a Bearer Cheque to the Complainant.
Srinivas.B.S.S.T (Expert) 02 April 2009
Learned friend. Neeraj is correct.
n.k.sarin (Expert) 02 April 2009
I agree with Neeraj
K.C.Suresh (Expert) 03 April 2009
There must be legal dues. That is the foundation of the section.
Ashey (Expert) 03 April 2009
to attract sec:138 of NIA , the cheque should be issued towards a legal obligation
Raj solanki (Expert) 03 April 2009
it will the duty of the accused that he has issued the bearer check with out any legal due to the complainant and it is not very easy to prove in the court becouse section 142 N.I.Act it makes presumption in the favour of complainant that the cheque has been issued in legal dues.
adv. rajeev ( rajoo ) (Expert) 03 April 2009
I am not remeber the citation in that citation it was reported that bearer cheque falls u/s 138 of NI Act, but burden lies on the complainant to show that there was legally enforceable debt of the accused.
MANISH (Expert) 04 April 2009
Dear Mr. Navin,
as far as I have understood your problem is A issued a bearer cheque to B as friendly loan. Can B prosecute A.

In your problem, B may institute a complaint and the same may be maintainable because sec. 139 of NIAct clearly lays the rule of Presumption of some legally enforceable debt or liability. But the same may not prove the case, and ultimately B will not succeed because A has issued a cheque to tender him the loan which is not his legally enforceable debt or liability towards B, the complainant.
Mahesh (Expert) 06 April 2009
Please see Mahesh Goyal v. S.K. Sharma (1997 Crl. L.J 2868) (P&H HC) and Babu Lal v. Kewal Chand 2008 (2) ISJ (Banking) 84 (MP HC) wherein it was held that if a bearer cheque was issued against a legal liability, proceedings under Sec. 138 will lie.
Hiralal Das (Expert) 07 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.


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