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Om Thakur (prop.)     20 June 2011

Security cheque bounced.

Dear sir, 

I have opened a dmat account with motilal oswal securities ltd through its subbroker based at gurgaon in jan 2008., intially i started trading with 25000/- and slowly slowly as required started putting more money to save stock from selling. In the meantime in month of feb 2008 I applied for Margin Funding and for that subbroker has taken two security cheque.  they offered  me orally trading limit of 5 times of my credit and T+5 days margin.

As I was doing trading mostly through my laptop online and everyday trading limit is open 5 times of my credit in the account.  suddenly on 5 th march they sold my stock of 8 lacs out of 10 lacs without informing me and when i raised this  matter with sub broker then they told  me that there is risk selling from mumbai.


on 11th march i tried to sell rest of stock and when i sold it they raised trading limit of 80 lacs and i got a call from my Relationship manager to short reliance stock.


thus in the evening they freezed my account and pressurised me to pay liablity of 8.10 lacs on my account, and later without intimation used security cheque taken for margin funding and write it for 8.10lacs dated 15 march 2008 and banked on 9th april 2008.

As i have got calls from sub broker to clear out standing or  they can lodge case in malad police station against me.

In the meantime  i have made instruction to my bank to stop payment on these cheque.

Later on 9th april 2008 they booked the cheque and i did not get any intimation from their side.

Now After 3 years they have surfaced and case was lodged against me in borivali court for amount of 8.10 lacs u/s 138 and 142 of NI.

As they debit outstanding in my account on date 15 march 2008 is 8,03,000/ and they have write it for 8,10,000/- and did not get any legal notice. and later I got account statement from broker  motilal oswal securities they have shifted debit to subbroker account and my liabality is nil towards them.

So please advice me remedial action I should take as case is mumbai and I am living in chandigarh.

can this we taken legally?


 3 Replies

Amit Parmar (Junior Lawyer)     23 June 2011

            First of all What was your application to stop payment in the bank ?  does it clears the misuse of the security cheques ?  And as  a complaint has been launch against you so as it is a  criminal case you have to engage a lawyer in mumbai not only to defend but to be protected otherwise a warrant will be issued against you for non appearance in the court and this will be very Tuff for you ..

          so you eangage a lawyer as soon as possible having an good knowledge of NI Act.

Om Thakur (prop.)     23 June 2011

Dear Amit,

Thanks for your guidance , As i got calls from my subbroker that they can use these cheque for recovery of outstanding liabality and I have given two or three security cheque, so i used instruction to my banker for stop payment of these cheque as I have lost them. And Last month I raised this matter with motilal oswal securities to issue my outstandling liabality statement and they have sent me online tracking of my account where there is no liabality due from my side.

As I have never been to mumbai before, never into litigation so can you suggest how to quash case filed against me in borivali court.

Thanks for your support and guidance.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     23 June 2011

If ni 138 case if filed andyou get court summons you to appear and defend it.

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