Anil Agrawal (Retired) 20 September 2009

Sec.138

Do all these attract 138?

Not arranged for.

Insufficiency of funds.

Account Closed

Payment Stopped

Signature differs

Refer to drawer

Present again

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2 Replies

N.Ramakrishnan (Advocate/ Senior Partner) 20 September 2009

Dear Mr. Agarwal,

Your query is very General. I all other cases except 3,4,5, & 6 sec 138 NI Act will be defenitely attracted. In so far as the reasons given in 3,4,5, & 6 are concerned it will only be the circumstances which can substantiate whether the provision is attracted or not. If the complainant establishes that these endorsements were as a result of deficiency of funds in the account and / or wantonly caused by the drawer, then you can be held liable under the provision.

Thanks,

Ramakrishnan, ADV