complaint from bank

No.The client could contact the banker and amicably settle by remitting the dues before it bocomes Non petforming asset.

Yes, bank may initiate proceedings of sec 138 of N. I. Act against borrower.

Thank you, is there any citation?

That is what banks are doing since decades and it is a practice.  Almost all bankers collect blank cheques and before the account is treated an NPA build up pressures through Sec.138, and they engage a counsel exclusively to follow up in court proceedings and pay account wise fees.  In Mumbai, I have seen that a junior advocate sits in the same court every day, as there are two or three cases every day in that particular court.

The Banks can initiate action under NI 138 in respect of dishonored cheque. Such cases are so commonplace that it requires no citation.

Thank you one and all

Mr. Siddanagouda Patil,

Do you need citation on the subject whether the Bank shall proceed in terms of bare act provided under section 138 of the Negotiable Instruments Act, 1881 ?

Of course the Banks shall proceed as provided in law, the drawer of cheque should have no doubt.

Whether the legislation passed by Parliament of India is inadequate ?

Originally posted by : Siddanagouda Patil
	A person borrowed loan from co-op bank, afterwards that person issued a cheque to pay the loan but it was dishonoured. Whether bank can file complaint u/s 138 of n I act against the customer ?

Yes bank can.

Coop.Banks normally proceed under the provisions of the coop.societies Act. If issued with surety, may proceed agaist the surety. If it is personal loan, pay attachment could be done. Seldom go in for 138.