AK 01 March 2016

138 Case - Next Steps

I am a director of a private limited company

Someone had recently filed FIR against my company under section 420. Police are currently investigating the same. Police have frozen my companies bank account.

I had issued a post dated cheque to one of the creditors of the company.

I had informed the party about the frozen account but they still went ahead and deposited the cheque.

Now they have filed a 138Case against me. I agree that I have to pay the party but considering the current situation I don't think I will be able to do the same for another 6-8 months.

The Party is not ready to wait and I have received the summon of 138

My questions are

What will happen on the first date at the court
Considering I am not denying the liability and have every intention to pay how should I proceed.
I don't have a lot of money so what's the easiest and cheapest way deal with this case.

I thank you in advance for all your help. I am from Thane, Maharastra

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4 Replies

Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law) 01 March 2016

when you appear on the first date , the court shall ask you to avail bail . The surety must accompany you and must furnish a proper bail bond . As far as settlement is concerned , simply tell the judge that you intend to settle . The judge shall also suggest the same option to the complainant . Enter into a mutual settlement wherein you either agree to pay after a period of time or in instalments , as per whatever suits you better . Don't lose your sleep over this . Be cautious but not nervous

AK 01 March 2016

Thanks Augustine Chatterjee, appreciate your reply.

Can you tell me what is a proper bail bond is there a format for the same and what documets I and my surety must carry along with us.

(Guest)

Bail bond will be decided by the Magistrate in the Order..Say for instance Rs. 20,000 bond amt WTH 2,sureties.Sureties need to carry their photos and Govt ID cards...

AK 01 March 2016

Does Rs 20,000 bond mean Rs 20,000/- Cash (sorry I am new to all this) and will I be given time to produce this or will I have to produce this on the spot.

I really appreciate all the quick replies.Thanks!