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Swami Sadashiva Brahmendra Sar (Nil)     13 July 2009

Cheque issued by a third party

Dear friends, a client has engaged me as his counsel in a writ petition. as part payment of fee, he has given me a cheque issued by an other person whom I do not know at all. I guess that my client appears to be clever and may be defrauding. what should I do if the cheque is dishonoured?



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 8 Replies

A V Vishal (Advocate)     13 July 2009

Sir ji

Deekshitulu.V.S.R (B.Sc, B.L)     15 July 2009

Mr Tripathi

In one judgment delivered by A.P.High Court  

2007(1)Andhra Law Times(Crl)394

it said that the son who issued a cheque for the amount due by the father in respect of a car loan, and if it bounces the son is liable.  Because it was not issued as a security. So on the same analogy you can proceed against the friend of your client, since he has taken up the responsibility of paying the amount on behalf of his friend. It cannot be said that it was given as security.

I hope your question is answered and in case I am wronog please revert back to me.

Swami Sadashiva Brahmendra Sar (Nil)     17 July 2009

thank you mr deeksh*tulu! this case may help me.

should I argue that there can not be any other purpose for issuing the cheque except to taking liability of my client bacause the drower is absolutely stranger to me ?

 

Anil Agrawal (Retired)     19 August 2009

Why should the third party issue the cheque to you and not your client is surprising. Kerala High Court has held that cheques by way of gifts, donations  and charity are not covered u/s 138. How can it be proved that the third party cheque was issued for "legally enforceable debt" except that the holder can file a complaint because he hold the cheque.

Dharmesh Manjeshwar (Advocate/Lawyer)     19 August 2009

If there is a writing by the third party that the cheque has been issued by him against discharging the liability of paying for legal services rendered by you to your client ..... I think then U can safely proceed for prosecution of the third party u/s - 138 N. I. Act .... I think there is a judgement in this regard ....


(Guest)

You write a letter to your client as well as the party who has issued the cheque placing the correct facts and find out their response to your letter. You may get a clear picture then.

Swami Sadashiva Brahmendra Sar (Nil)     19 August 2009

Thanks to all ! Now,  my apprehension is removed as the cheques have been encashed . Therefore, the real issue has become infructuous and the question remains mere academic one.

Thanks again to all!

Deekshitulu.V.S.R (B.Sc, B.L)     20 August 2009

Grate Mr Tripathi

So you have gotthe amount. Hence please put some amount in a hundi of a Temple of your choice and pray for the health and wealth of the members of Lawyers club of India

Bye


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