Antony Loyed (Director) 14 January 2013

Ni act jurisdiction new amendments

i have started a business of contracting Canteens in the schools in Hyderabad, with four partners with 13 lakhs shares of each. i got registered the agreement and statred the business.

Subsequently business could not be conducted properly due to 45 days continuous Telegana Bandh, Then a partner started compelling me to give back his share of 13 lakhs.

out of his compulsion and continuous harassment, i have paid 3 lakhs and give a letter in the frim letter headundertaking to pay remaining 10 lakhs with in 3 months. also i have issued two cheuqes of 5 lakhs each.

Due to capital cruch we conduct the business and now the business in loss.

Now the above said patner presented the cheque and file a criminal case against me, infat i haven't received any money in my hand.

His contentions are

1. As we haven’t started business, he needs his money back

please advice me on:

1. Jurisdiction ( what I heard that the jurisdiction is paying banker or collecting banker- is it true, if yes please give any citation of the related cases, or when it was in force.)

2. Also please advise me what are the other defenses available to me.

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3 Replies

santhosh.g. (advocate) 14 January 2013

sir,

As per NI amendment act section 138, territorial jurisdiction lies:-1) where major part of transaction took place,2) where the cheque issued, 3) where the payee bank situates, 4) where the drawer bank situates, 5) place of service of notice 6) place of issue of notice, 7) place of residence of accused, 8) place of residence of complainant. For more detaile go through" Law relating to the The Nigotiable instruments Act " by S. Krishnamuthi Aiyar or Bhashyam & Adigas "The Negotiable Instruments act" latest edition.

As per Partnership act a co partner cannot file a cheque case aganist another partner for the share amount invested by him in the joint business .

Antony Loyed (Director) 14 January 2013

Thanks

it was very useful, could you plesase give me any citation point tha made "As per Partnership act a co partner cannot file a cheque case aganist another partner for the share amount invested by him in the joint business"

Thanks

DAULAT DILBAUG (Problems related to money marriage matters.-dostnaye@gmail.com) 15 January 2013

There is no such provision for default in payment of dues that is bounce of cheque in any law.

If you claim partnership dues than lot of things have to be shown that is registration of partnershin deed with Govt and its accounts.

Without such records it is a pure case of cheating.

Firstly the cheque bounce case can be filed, process will be issued and only in trial if no legal iiability is shown and proved than only there will be relief otherwise compansation , fine and conviction.