Anwar Jamal 17 November 2023

Can accused be safe after ni 138 judgement on filling bankruptcy

Hi,

I have given loan to someone and in return he issued Cheque to me on agreed date but those Chequs are bounced

i filled ni 138 which is going against accused after Cross examination and now he is filling bankruptcies application(input from common known person) can this step save him from legal liability. He is running business but it is in his late father name and he is living in house which is his mother name.

my question: will I lost my money, I asked my lawyer he told this is last option for him to save himself from paying money to him.

thanks

anwar

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7 Replies

Dr. J C Vashista (Advocate ) 17 November 2023

Till the time bankrupcy case is not decided as prayed by you, any offence u/s 138 NI Act, 1881 is maintainable and shall be executed.

1 Like

Sudhir Kumar, Advocate (Advocate) 17 November 2023

bankrupcy cannot save him from cirminal liability.

1 Like

Advocate Bhartesh goyal (advocate) 17 November 2023

Offence of sec 138 of N.I.Act is punishable with imprisonment and fine and C unourts can't pass any decree or order to accused to make payment of cheque amount and interest so if Court declares accused as bankrupt even though he can escaped and have to face criminal liability ( punishment and fine ).

P. Venu (Advocate) 17 November 2023

Yes, the aspect of alleged bankruptcy is no defence in criminal liability under NI 138.

T. Kalaiselvan, Advocate (Advocate) 18 November 2023

Both are different proceedings under different provision of law hence the accused has to face the criminal proceedings as per law

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 23 November 2023

In a cheque bounce case there are two aspects. 1. To return the money as per the bounced cheque. 2. Punishment under NI-138 for issuing a dud cheque. Under banrupsy he may escape the liability to return the money. But he has to undergo punshment under NI-138

RAKESH PIPRODIA (ADVOCATE) 26 November 2023

As per the recent judgment of Hon'ble SUPREME COURT in the case of AJAY KUMAR RADHESHYAM GOENKA VS TOURISM FINANCE COMPANY LTD. It is a well settled principle that the accused cannot escape from 138 NI ACT liability.