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adv asgar   29 July 2019

138 ni act

A gold Smith without regiatration without paying tax without license sell gold to a and in aganist he payee cheques when gold Smith went to bank for encase the cheque reply from bank was insufficient fund now question is can gold Smith file a case under section 138 or not and can illegal business comes under Ni act


 3 Replies

Adv Deepak Joshi +917017821512 (Advocate)     29 July 2019

yes he can file complaint under 138 NI act

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     29 July 2019

Yes, the Goldsmith can file a case under Section 138.

G.L.N. Prasad (Retired employee.)     29 July 2019

The burden of proof always remains on drawer who issued the cheque, and payee's disqualifications are immaterial as the presumption is that a cheque was issued for valuable consideration.  This was also reiterated by SC in a recent judgment, wherein drawer questioned the income of payee in lending such amounts as per tax returns filed by the payee. and ruled that his status is not relevant.

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