common_man (NA) 04 June 2010

Promissory note dishonoured. Can we take criminal action?

Just like if chaque is bounced, then we can file the criminal case under NI 138 act, Can it be possible to do the same if person who hold the promissory note demanded the money to borrower and he failed to do so, then can we file criminal case against them?

I gave some money to a friend who were in need of money. In exchange I got in wriiten on Rs100 Promissory Note to return the money with interest. The Promissory Note is notorized.

Despite I send the repetative demands to return my money, borrower did not responded. I filed the Money recovery suit in the court. But there he is not responding to court notice. There are 3 notice sent ..but no response. I do see this friend in the city but he is not giving any response. Promissory note is in time limit.

What action cout can take? What will be the best way to find about his property details and income records?

So I want to check whether I can file criminal case or not for not returning the money, breach of trust etc.
If I able to file criminal case then will it affect the money recovery suit too?

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5 Replies

kranthi kiran (Works In Judicial Department) 04 June 2010

In the case of default to pay promissory note amount, no criminal action cannot be intiated, only civil remedy is available. If the party is avoiding to receive summon, then file a petition for substitute service, and get the summon published in the local news paper. Inspite of that notice, If the defendant fails to appear, Court can set him exparte and pass decree in your favour. After paasing of decree, it can be executed by arrrest of the Defendant/J.Dr or by attaching his properties.

common_man (NA) 04 June 2010

Thank you Kiran !!

Yes, the paper notice also send in local news paper. Despite that he did not appeared in court. So now my advocate told me there will be exparte order.

He has a flat in good location in the city..but it is mortgaged. Since he is not appearing in the court and i am not able to find the liablities on the mortgage from the bank..so i tend to push my lawer to register the criminal case.

Another thing how and who is going to decide whether he (borrower) defaulted? He told me that he do not have money to pay..but i am not able to believe that because its been already 2 years and he do see enjoying comfortable life..I do have witness that he went to foreign country too..

Bottomline I want to take stricct action against him and try to recover money. There are 2-3 138NI cases against him..which he settled out of court. So I am thinkting to register a criminal case of cheating/fraud/breach of trust against him.

If my lawyer is not ready then I want to search another lawyer to do so successfully.

Thank you once again.

YOGESHWAR. (ADVOCATE HIGH COURT-criminal /civil -youract@gmail.com) 14 June 2010

Please carry on civil suit method only , no criminal action possible.If you search another advocate you have to also thank him in advance as you are doing on this site.

No body has told you so my reply ; if your creditor finds an enterprising advocate than he can file criminal action against you for doing illegal money lending buisness. And it depends in which state you live you will be arrested immediately . The money lending controller which is mostly co op department will attach your properties related to money lending buisness and will file police complaint. And in that situation thanking in advance will not help you.