Cheque bounce

Chq bounce cases u/s 138 of Negotiable Instruments Act will apply if the chqs were given for discharge of a liability. If you have served notice period as required or paid money in lieu of serving notice period, I believe no liability exists. Moreover, if the chqs were given as "security" and not to discharge a liability, sec 138 does not apply.

section 138 of NI Act shall applies only in the case of an legally enforceable debt.  The matter may pertain to civil dispute wherein the management may opt for money recovery on account of violation in service agreement in the competent civil court of law

Dear Sir,

No Liability can be excersised on the Holding Cheque given by you. U shld also possess the documents to prove that the Cheques was given as a security. Or else c to that u use all other cheques in the Cheque book and obtain a new cheque book from the bank and make few cheque transactions. Wherin you ll be secured and u can prove that u have not issued and cheque for any other liabilty with your school, n no chance would be given to them to cook up the stories against you to file a 138 case against.

Regards

Anoop Kumar

Advocate

Give advance notice if the cheques are undated and not presented so far.

prasun dhandra das i s correct

Sir,

Thank u all for replying to me.

I have given that cheque only as security. Few other cheques has been realised after the the cheques i have given as security. 

thanks once again for the reply.