I have received one notice from one of my client under sec 138. Cheque was given at the time of agreement for doing work under them for the purpose to be used in future if any liability comes against me for the material they supplied to me. There is no name, amount and date on the cheque as st the time of handing over it, there was no liability. They have given me 10 days time to reply the Notice, can I ask for some more time?
When once you issued blank signed cheque. It means you have given authoristaion to fill the cheque. So there is a liability by you for the amount filled by them. You must give reply to the said notice. If you want I am ready to send the reply notice
When a blank cheque is given with signature only and all the blanks including date, name of payee and amount are filled by the payee, various sections of the Negotiable Instruments Act apply and decisions of courts are also varied on the validity of such a cheque and applicability of Section 138. It would be wise not to give a written reply and commit yourself. You can speak to the person and ask for time. He may or may not agree. Further in order not to lose the case he may file the case within the time limit. Even if he files the case, the case is always compoundable at any stage. When you are ready with the money in due course, you can offer to him directly or before the court and close the case.