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amiya (engineer)     31 August 2009

cheque dishonoured because of account frozen

one company has taken Rs 100000/- as security deposit  in shape of dd proof of which is there. company needed to refund the money after a year and it gave us a cheque of 1 lakh which bounced. the problem is the rn bank cheque return memo says account frozen, they have got mere 5000 rs balance and have issued 1000's of people cheques..the company has closed and the offices are sealed by police the ceo cfo and cto are mising, may be account has been sealed too, now someone is saying we cannot file a case for dishonour of cheque for account frozen. so how to deal with this case i have already sent a notice. plz help


 6 Replies

Prof.A.S.Dalal (Professor)     31 August 2009

I think you are a unsecured creditor.First we have to know, In what type of company you have deposited the money i.e. trading or not-trading.If the proceeding(criminal in nature) then you can file a criminal case against the ceo etc of the company. They will be held personally liable for Breach of trust etc. I advice you to meet some good lawer.

amiya (engineer)     31 August 2009

it was a software company the 1 lakh money was a security deposit which the company should return after 1 year. we were employee of that company, the cheque the company gave bounced.. police and govt have sealed the company the higher authorities of the companies are mising..


Adinath@Avinash Patil (advocate)     31 August 2009

you have allready  sent a notice to company.  Then  you should have to file pvt complaint u/s 138 of N.I.Act against signatory of cheque/company, subject to limitation provide in N.I. Act.

amiya (engineer)     01 September 2009

the only problem is since all heads are mising and the offices closed or sealed nobody there to receive my advocate told me that i need to write on newspaper regarding this after 15 days of sending notice, writing something like since you have not paid any heed to return my money and it's been days i have sent the notice regarding your cheque has been dishonoured i m filing a case against you and ur company.and keep that newspaper as a reference to me and can file a case. is this the correct way? or there is some other alternative and better way? i want to know that can i file a case for cheque bounce because of account frozen clause or not?  i want to be sure coz a friend of mine told me that we cannot file a case for this type of cases and can file a case only if insufficient balance case. someone plz clarify.. 

Shivasurya (Lawyer)     04 September 2009

Hi Amiya,

the better advice is to file criminal complaint before the concerned police station against the CEO, directors and all other responsible persons of the company for offence under section 406, 420 I.P.C. if inaction of the concerned police, approach higher authorities to file FIR or file direction petition u/s.482 Cr.P.C. before Highcourt and get direction to file FIR and further investigation. in the mean time you can also file criminal comlaint for the offence committed u/s.138 NI Act . in that case let the accused persons can prove at the time of dishonoring the cheque their account was frozen and they have maintained sufficient funds in the account of the company. you can proceed in both ways you will definitly get relief   

Adinath@Avinash Patil (advocate)     04 September 2009

whether notice returned as not claimed or left address?

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