query about 138 section


Hi I need some information about the section 138 NI

i have issued 2 cheque in the 5th month and now the cheque has been dis hounred due to stop mayment in 25th octuber now he has send me a advocate letter to file a suit against me under the section 138 NI

Please reply that can he file this suit and what should be my next step

 

 
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service

under section 138 of negotiable instruments act, stop payment of cheque does not have any effect in the section. the bank will issue cheque return memo to the payee and also enclose therewith statement of your account. the payee can file case against you under section 138  of Negotiable Instrument  Act 1881. but during the evidence process, court will call banker as well as you to depose before the court, reason for stop payment of the chque, at that time you may clear the position to the court and court will keep in mind your deposition while delivering the judgement.

 
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Mr. Singh
 
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Mr. Singh


The person to whom you have given the cheque, if  it gets dishonoured, he has the right to file the complaint underSec.138 of Negotiable Instruments Act. Since, the cheque is dishonoured, you can request the person to deposit the cehque again ,so that it can be honoured and therefore there is no reason that he will file the suit under Sec.138 of N.I.Act.


( Sarita Shivaraman ) 

 
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The Advocate must have mentioned about filing of the Complaint under Section 138 N I Act, which can be filed within one month after the expiry of 15 days time from the date of receipt of notice by you.


He can also file a civil suit for recovery.


Legal Edge

 
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Advocate

doesn't metter you stoped the payment or cheque dishounred due to insff. of funds. it will come under 138 of N.I. act,


but if there is some legal reason for non paying the


cheque amount you must give ans. the said notice

 
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Dear Sir Thanks for your reply


actualy the complete matter is that he is trying to cheat me when i said him to complete the work he said the total cost is 80,000/- and when he start the work he said that budget will little bit inrcease so i gave him 75000/- cash as advance  and i have paid all amont in cash and never demand the recipt as the person was well known but when he complete the work he gave me a hand written bill of 2lack so we wer shoked how it come possible and we negotiated alot and took decission that we will pay him 50000/- in two instalment of 25000/-   so gave him two cheques of 25000/- as a sequirty dated 15/052008 and 31/05/2008   but when i gave him this 50000/- he said that cheque has miss placed i said ok no problem and everything finished so i stoped the cheques


and after 5 months he deposited the cheque as he knows already that this cheque has been stoped and send me this notice that i will file a suit against you now please tell me what step i shuold take

 
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