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Anil Dubey (Propreitor)     06 October 2009


Dear All,

A cheque issued by a foreign firm and in foreign currancy if bounced can a case under 138 be filed in Indian Court.


Anil Dubey


 7 Replies

Shantibhushan (Advocate)     06 October 2009

Yes, it attracts 138 of N.I.Act. So far as the securing the attendence of the accused in such kind of matters, it is very much hectic, because accused inspite of service of summons may not apear in court and after warrants are issued against such accused who are foriegners, it is really impossible to execute the same according the procedure established.

So you wll  be lucky enough, if in your case the accused who may the foriegner if appears in court.



ghansham das (self employed engineer)     06 October 2009

Dear sir,   I   think from my memory, you are Ex- law minister ,
     You are guiding for an impossible aspect even in india ,whereein the containts of emails,? msgs, are under disqualified practice? Isn't  sir,?     

 the accused can not be serviced, can not be produced in the court, even non bailable warrantes are kept on hold in cases,.
Is it not a loop holes of the law and judicairy,                              please focus,      if you can.


A deemed Ltd company, attched to its principal  registred  company which is in a public share holding stake, can off load its deemed limited company? How? which provision of law,? when need to be Deregistred due to their acts, mis deeds.? Also 
 when against the criminal case 138 , 141,142- etc,

[ 433/434 Noticed ] is not decided, pending ? Can it be sold to any Foreigner /NRI/Outs siders/ What will be the fate N status?
Please also guide.  There are number of the charges taking place,?? violation of many acts, filing wrong affidavit, filed / mis utilisation of funds/ intensional common act as a illegal act, malafide intentions, breach of trust,etc,etc,,,,



Adinath@Avinash Patil (advocate)     06 October 2009

I am different opinion foreign cheques in foreign currency if bounced  section 138 of N.I. Act will not attracted . your qury is incomplite  you  have not clarified where transaction have occured and where cheque dishonured. whether  transaction occured in Indian currancy  or foreign currency . The said cheque is not enforceable by law in Indian courts .

Anil Dubey (Propreitor)     07 October 2009

The cheque was used after the account was closed by the foreign firm a year back.Cheque was in foreign currency and was diposited in India in an Indian bank.


Anil Dubey

Adinath@Avinash Patil (advocate)     07 October 2009


Section  134 of N.I. Act -

Law  governing liability of reign instrument----

In the absence of a contract to the contrary , the  libility of maker or drawer of foreign promissory note, bill of exchange or cheque is regulated in all essential matters by the law of the place where he made the instument, and the respective liabilities of the acceptor and endorser by the law of the place where the instrument is made payable.

Go through the commentry of said section And case law on the same point you will find your answer.

you have not explained about place and about  coditions of contracts.Whether said  contract is legal and voilates any law,  has to be seen for detail answer for your qyery.


Anil Dubey (Propreitor)     09 October 2009

Thanks for your guidance.The cheque was from Singapore in Singapore dollars.There was no contract signed for any purpose.


Adinath@Avinash Patil (advocate)     09 October 2009

go through the ruling i have cited in this forum .

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