138 act

Dear,

The offence is compundable [ can be settled outside the court]... .... You can neither deny the liability nor signing of cheques, even if signed blank and long back ... your liability can not be extinguished ....... If u have funds, better to clear it off  to get out of it .... regards

If the blank cheques were given as security to the bank, possibly 138 NI Act is not made up.

Regards,

Ashish Davessar

Delhi, Chandigarh

08427414792

dera sir,

i have given 10 undated cheque of 1 lakh each to a company( garment) as a security deposit. when i closed the business with the company then the company produced the cheque in bank . the cheque bounced due to insufficient funds. and then they sent me a legal notice asking me to give them the amount. but according to them our business statement which was sent earlier shows that i do not owe money from them.

in this case what can i do regarding this. because i got the notice from the court now regarding sec 138 ni act.

can you please tell me if company misused my cheque and harassing me. what action can i take against them.

i am from different state and it would be very expesive to go all the way and defend them.

please guide  

@ amlendu

Any prosecution under 138 NI Act cannot survive if the cheque was not issued in discharge of a legal liability. The onus is on you to rebut the presumption of legal liability in favour of the complainant. Produce the relevant books where the entries were marked to show that the cheques were not issued in discharge of any legal liability. If the cheques were issued as a security, you have a good chance of exonerating yourself.

Regards,

Ashish Davessar

Delhi, Chandigarh

08427414792

Berkalys bank people are making lot of mistakes in filing cheque cases , if you contest properly you can come out of it.