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Rajeev (Company Secretary)     19 May 2010

Note on Section 138 of NIA

Greetings All,


Can anyone provide me the descripttive note on the applicability and action taken by the person / company, if, there is a violation under Section 138 / 139 and 142 of the Negotiable Instrument Act, 1881, including but not limited to time frame as prescribed under the Act for sending Legal Notice, filing of Criminal Complaint in the Court, etc.


Thanks in anticipation.


Best Regards


Rajeev Sharma


 6 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     19 May 2010

well legal notice can bes ent only after dishonour of cheque and that to within one month of dishonour of cheque.

after notice, one can file criminal complaint u/s. 138,139 and 142. in court for receiveing the said amount and for criminal punishment together.


Rajeev (Company Secretary)     19 May 2010

Dear Mr. Gagdani,


Thanks very much for your prompt reply. 


Now, our Company's bank account is at Delhi but party is located at different city. As a procedure, we collect cheque from the party concerned from a particular city, say, from Pune and deposit the same in pune, itself which, if bounced, than, we get the status from the Bank in which our Company has account i.e. from Delhi Branch of our Bank.


Now, as a matter of jurisdiction under Negotiable Instrucment Act, I can file a criminal complaint at Delhi itself and need not to go to Pune. Kindly throw some light on my understanding that whether my understanding is correct or not?


Thanks & Best Regards



Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     19 May 2010

well it depends on the transaction.

for simplification you can ask following questions and you will get answer by yourself.

what transaction.

where and when

i.e. occurance of whole transaction means business transaction.

in which manner. for e.g. if i send goods to pune in my self name from delhi then pune jurisdiction.

if i send good to the party from delhi to pune then at delhi or pune.


harsh asthana (advocate)     03 June 2010

action has to be taken in time for maintainability of 138/142 other wise one can not go for criminal proceedings and has to file a civil suit

ravisankar (advocate)     21 October 2010

Dear Sir,

                 You can not file a complaint at Delhi.  You can file complaint only at the place where your party  has bank account or he is doing business.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     22 October 2010

Please go throough the Harman citation of SC in this matter.

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