I have taken equipment on finance for 1 cr. I have paid approx 50 lacs and the balance due is 50 lacs on monthly emis of 3 lacs. Now i am defaulting on these payments as my client has cancelled the contract.
The financier/bank had filed section 138 charges on me for bounced cheques against these emi dues. In the meantime he has taken over the asset and sold it for a value of 15 lacs (35 lacs still being due)
MY question is are the section 138 criminal charges still applicable as he has sold the assets and the recovered amount is more than the cheque bounce amount