S M SHARMA (no job) 06 September 2021

Cheque bounce sec. 138

This is case of my son. My son took loan of Rs.1.5 lakh in April, 2020 from his friend. My son gave him two signed blank cheques. My son returned this loan in August 2020. His friend returned only one cheque and said the other is lost. In September 2020 my son took another loan from relative of that friend for Rs.2.00 lakh and signed one agreement and also gave one blank cheque whose number was mentioned in the said agreement i.e. Cheque No.738982. My son returned this loan also on 6^th January 2021 by cheque and got back agreement and blank cheque.

Sir, to our surprise, on 19^th July , 2021 my son got a Notice from the said relative of his friend that my son had took loan of total: Rs.14.00 Lakhs, in cash from him in parts ( kai bar mein) for construction of his house and returned only Rs. 2 lakh and demanded Rs. 12 lakh. Actualy he got a cheque No. 738981 dishounred for Rs.12 lakh in July, 2021. I came to know that friend of my son gave his cheque, which he said was lost, to his relative. Relative of my son’s friend said in notice that this cheque was given to him in June, 2021 by my son.

You will see that cheque Number mentioned in the notice of 19th July, 2021 is 738981 while cheque No. given in the Agreement of September, 2020 to that relative was 738982. This clearly shows that this is an old cheque prior to Sep. 2020 which is misused by the relative of my friend.

Further my son has no house in his name.

Pl advise defence we should take in this case.

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7 Replies

Dr J C Vashista (Advocate) 07 September 2021

Facts of the case as posted by you are sufficient which shall form part of defence of your son. He (your son) must reply the notice issued by relative of his friend who got the cheque presented and dishonoured. Seek professional services of a local prudent lawyer for advise and necessary proceeding.

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Pradipta Nath (Advocate) 07 September 2021

Your case needs immediate activity. Please engage an Advocate and reply the legal notice. Serve it through Registered post with A/D.

Advocate Bhartesh goyal (advocate) 07 September 2021

Yes, reply the notice through a experienced lawyer. Your reply will be your defence if complaint u/src 138 of N.I.Act is filed against you.

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 07 September 2021

You can send reply to legal notice through watsapp, email etc. for speedy communication.On 11 july, 2020, the Hon'ble Supreme Court agreed in principle that serving notices and summons, integrgral to judicial processes, on persons through instant messaging services like Whatsapp and Telegram in addition to emails would be legally valid.

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S M SHARMA (no job) 07 September 2021

Respected sirs, thanks for your guidance. We have already sent reply. I came to know from a common friend that complainant after trial starts, will file compensation u/s 143a of NI Act. so that he will get nearly 20% of cheque amount. That will be difficult for us to arrange Rs. 2.4 lakhs. Is it that we can defend the case only after this payment. Please enlighten us under what circumstances or conditions Hon'ble court can pass order u/s 143a. and what is the remedy. - S M SHARMA

M V Gupta (Advocate) 08 September 2021

The information given by your common friend is correct. Under the newly inserted Section 143A of the NI Act, in the case of summary trial under Sec 138 of the Act, the payee who filed the case, can apply to the court for interim compensation which shall be 20% of the dishonored cheque. If the case is not a summary case, the payee can apply for interim compensation after framing of the charges.

S M SHARMA (no job) 08 September 2021

Thanks sir, but is it correct Madras High Court has clarified about conditions under which this compensation is granted "Interim Compensation under Section 143A of Negotiable Instruments Act, What Madras HC held …It is not necessary that in all cases, the trial Court must necessarily direct the complainant to pay interim compensation and such a direction should be given only on a case to case basis, by taking into consideration the facts of each case. “The reasons may be varied. For instance, the accused person would have absconded for a longtime and thereby would have protracted the proceedings or the accused person would have intentionally evaded service for a long time and only after repeated attempts, appears before the Court