section 138 of negotiable instrument act


 Party issues cheque ( say for Rs.340012/- ) against our bill and it get bounced. Further payment is made by the party by RTGS for the bounced cheque amount. The bounced cheque remains in our hands.

We had dispute with the party in the past and suffered financial loss because of party's admancy. To settle that account we want to file case under Section 138 Of Negotiable Instrument Act.  Our notice to party states that you issued cheque say forRs.340012/-  as an advance payment for future supply and it is returned by your bank on account of insufficient funds or due to your instructions to 'stop payment'

We understand that any cheque issued by any one stands valid within its validity period of three months and irrespective of any debit balance can not be bounced by the party. Plz advise us whether case can be filed under Section 138 Of Negotiable Instrument Act showing it as an advance payment.

With Regards,

Ashok Gupta

 
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ADVOCATE sardarsena@gmail.com

No case can be made out for bounce of cheque for advance payment of future supplies.

 
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No case under sec 138 of N.I. Act is made out as cheque is not issued against any debt or legally enforceable liability..cheque issued for future supply if bounced not comes under the purview of sec 138 of N.I.Act.

 
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Accused in cheque bounce can be convicted and money be recovered .PROSECUTE PROPERLY. chequebounce1@gmail.com

Make your home work properly so that defense can not poke holes, You can make a case of cheating, breach of trust if you have earlier outstandings.

NI 138 cheque bounce will only stand if you current legal liabilities. Please go through this recent SUPREME COURT reasioning for filling case for cheating and breach of trust even cheque bounce case is disputed.

 

 

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. 645 of 2012

 

27. Admittedly, the appellant had been tried earlier for the offences  punishable under the provisions of Section 138 N.I. Act and the case is sub judice before the High Court. In the instant case, he is involved

under Sections 406/420 read with Section 114 IPC. In the prosecution under Section 138 N.I. Act, the mens rea i.e. fraudulent or dishonest intention at the time of issuance of cheque is not required to be proved.

However, in the case under IPC involved herein, the issue of mens rea  may be relevant. The offence punishable under Section 420 IPC is a serious one as the sentence of 7 years can be imposed. In the case under N.I. Act, there is a legal presumption that the cheque had been issued for discharging the antecedent liability and that presumption can be rebutted

 

only by the person who draws the cheque. Such a requirement is not there in the offences under IPC. In the case under N.I. Act, if a fine is imposed, it is to be adjusted to meet the legally enforceable liability.

There cannot be such a requirement in the offences under IPC. The case under N.I. Act can only be initiated by filing a complaint. However, in a case under the IPC such a condition is not necessary.

 

28. There may be some overlapping of facts in both the cases but ingredients of offences are entirely different. Thus, the subsequent case is not barred by any of the aforesaid statutory provisions. The appeal is devoid of any merit and accordingly dismissed.

 

 

 
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thank you sir.

 
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My Blank cheque is missing in my friend shop. I stop payment this cheque on feb'12. My friend fill 3lacs rupees in cheque and submit to his bank account. After cheque bounce he send me notice and demand 3lacs rupees. he mention in notice i am taken 3lacs rupees as loan against cheque. i reply him against notice. now he file case cheque dishouner 138.
pls sugest me what i do...and what my winning chance in case .
no any contract or agreement with us.

 
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ADVOCATE HIGH COURT-criminal /civil -youract@gmail.com

1) You say the cheque was blank but why it was signed by you.

2) How it is that only particular cheque was stolen.

3) How the person had access to your confidential belongings such as a signed cheque.

YOU HAVE TO GIVE ANSWERS TO ALL THESE QUESTIONS SINCE LAW PRESUMES THAT ONCE THE CHEQUE IS SIGNED BY YOU , IT IS ISSUED FOR A LIABILITY.

 
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