pravin jain (proprietor) 05 December 2009

Is transaction Debt or Other Liability under N.I. ACT

A Chartered Accountant received fees in the name of his CA Firm, did pre investment feasibility report, Detailed Project report and certain other works.Due to some dispute HUF of, proprietor of CA Firm issued cheques to repay the amount to the company and they got bounced.

Now question arises :

(1) Whether the karta of HUF shall be liable for fees received by

CA firm ?

(2) Whether fees received by CA Firm and returned by his HUF to the company is a Debt or Legally enforceable liability against karta of HUF?

(3) Whether cheque issued by HUF to return the fees of CA Firm shall be treated as issued for consideration?

PLEASE COMMENT ON THE PROBLEMS WITH RESPECT TO NEGOTIABLE INSTRUMENT ACT.

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4 Replies

Anish goyal (Advocate) 06 December 2009

Jain sir i m not able to understand your language. Please clarify more.

R.K.SUNDERRAJ (LAWYER HUBLI,KARNATAKA) 06 December 2009

There is confusion in the question,Anyway I would like to get a clarification,that do you mean that wheather the service rendered by you amounts to debt or legally enforcable debt.

pravin jain (proprietor) 06 December 2009

Dear R.K.SUNDERAJ

Yes, I want to know whether amount received to rendered the services amounts to debt or legally enforceable debt.?

pravin jain (proprietor) 06 December 2009

Dear Anish Goyal

A Chartered Accountant received fees in the name of his CA Firm,due to some dispute instead of CA Firm the amount returned to the client of CA Firm by his HUFand the cheque got bounced.

(1) Whether the HUF shall be liable for fees received by CA firm ?

(2) Whether fees received by CA Firm and returned by his HUF to the company amounts to Debt or Legally enforceable liability?

(3) Whether cheque issued by HUF to return the fees of CA Firm shall cover under section 138 of N.I. Act.?

PLEASE COMMENT ON THE PROBLEMS WITH RESPECT TO NEGOTIABLE INSTRUMENT ACT.