N.K.Assumi (Advocate) 02 April 2012

Is this company liable uinder 138?

A registered Company under the Comopany Act, floaded an advertisement to the public to deposit money with a promise to repay them after one year with interest at the rate of 6%. A large number of public makes a monthly deposit in the said company, but after one year when the company issued cheques to the depositors the cheque bounce. Does it attract section 138 NIA?

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Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com) 02 April 2012

Dear Sir yes, as per my opinion, because the company is liable to pay the amount to depositor and the cheques have been bounce.

(Guest)

Dear Assumai

Company and his responsible Director attracted under section 138, 142 N.I.Act. Furnish notice to Company as wel as Responsible Director. Also made to both as Accused in complaint case.