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Sanjay Zantye (Manager)     05 November 2009

Can NI 138 B apply on a third party cheque?

My Personal Loan banker has filed a suit under Section 138B of NI Act for Cheque bounce due to `Insufficient Funds'. However, the said cheque (used as exhibit) neither belongs to me nor has been issued by me. It is of some unknown person having no relation with me.

The PL account is now regular as well. (Though it was overdue earlier for some time due to financial problems.)

Hence, it is visible that they have filed a suit out of ignorance or  are trying to harrass purposely.

Can Section 138B apply to third party cheque bounce as well?

What should I do now?

Please guide.


 11 Replies

Sanjeev Kuchhal (Publishers)     05 November 2009

Section 138 criminal action could be taken only against the drawer of the cheque. Unless it is shown that the applicant could be treated as drawer of the cheque in the eye of law, no criminal action can be instituted against him. In your your as per details given by you, prima facie, does not show the necessary ingredients of the offence punishable u/s.138 of N.I. Act.

Anish goyal (Advocate)     05 November 2009

Sanjeev sir is right in his explanation. You must demand cost in above case.

Sanjay Zantye (Manager)     05 November 2009

I need more guidance on the matter.

I have not been able to appear in court on summons date as I was out of station due to an emergency. Also could not consult a lawyer then.

Moreover, the PL Banker's Account Manager (handling my account) has ben assuring me that the case will not be followed as it is filed by mistake. I no longer trust his words.

What are the consequences of not appearing in the court.

Do I need to get a bail etc.? (I am not conversant to judicial process)

Please suggest.

Meenakshi (Lawyer)     05 November 2009

If that is proved in court that you were out of station its fine you wil gert onother date for appearance....Possibilities are that your name match with the same person or somebody is just trying to harass you....

...And if u have no relation that you have nothin to worry as there is no way Your name be suggested for same....Just wait for them to issue fresh summons.....

You need to clarify with the Bank it must be a mistake due to matching names or something.

Ask for compensation for such mental agony and harrasment you went through.

No you dun need to get an anticipatory bail or anything....

Meenakshi (Lawyer)     05 November 2009

There are chances of somebody forging your signature on one of your cheques....Consult a local lawyer

bhupender sharma (head)     09 November 2009

 Mr. Sanjay  U pl. hire a counsel and let him file an application under section 250 Cr.P.C for accusation without reasonable cause and see the result if the aforesaid circumstances are true to the best of your knowledge.

Adinath@Avinash Patil (advocate)     09 December 2009


prathap (manager)     09 December 2009

I think MINAKSHI had give a right advice and i do agree over it

harpreet singh (lawer)     29 June 2012

Mr. MINAKSHI had give a right advice....i agree..:)

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases. lawproblems@gmail.com)     29 June 2012

In the circumstances NI 138 case can not survive against you.

R Trivedi (advocate.dma@gmail.com)     30 June 2012

Just check  following:


1.  Every cheque would have an account number ?


Is it yours ? If not then don't worry. If the court has issued the summon notice mechanically, along with this summon notice a photocopy of the cheque or complaint would have come along with the bank and cheque details. Go to the drawee Bank, take a letter from them and furnish it to the court on the first date, that it is not your account and you are falsely draged into it. This one day trouble will save you from bigger trouble.

Incidentally did you receive any notice ?


The case can be instituted only against the drawer, who is maintaining the account.

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