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Misuse of security cheque
2 weeks ago
I had given a post dated security cheque of Rs 1,50,000/- to a person and agreed to pay him 10,000/- monthly for 15 months. Accordingly I paid him 6 installments before running into a financial crisis. I notified the same to him and asked for some time. In the meantime he deposited the cheque in bank without giving me any intimation whatsoever and tried to encash Rs 1,50,000/- although his debt was around 90,000/-. I had already stopped the payment of the cheque and it was duly returned to him by the bank without any deduction. Now he has sent me a notice u/s 138 of NI Act. So what are my legal options now? Can I take any legal action against that person for misusing the cheque and breach of trust?
A.Dear Client,
In case the person has misused the cheque and issued a notice in that regard, you need to reply to the notice accordingly. Further, a cheque bounce case cannot be closed without a trial. If you want to close it at the beginning, then you can approach the High court and seek to quash such criminal proceedings under Section 482 of CrPC by providing evidence for misuse of cheque and breach of trust. You can also file a suit for criminal breach of trust under Section 405 of IPC. If required, you can consult an advocate for advice and assistance in the matter.
Hope it helps.
Thank you.
In case the person has misused the cheque and issued a notice in that regard, you need to reply to the notice accordingly. Further, a cheque bounce case cannot be closed without a trial. If you want to close it at the beginning, then you can approach the High court and seek to quash such criminal proceedings under Section 482 of CrPC by providing evidence for misuse of cheque and breach of trust. You can also file a suit for criminal breach of trust under Section 405 of IPC. If required, you can consult an advocate for advice and assistance in the matter.
Hope it helps.
Thank you.
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A.Dear Client,
When a person issues a post-dated cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque is free to present the same for encashment on any date and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. A post-dated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the cheque, the cheque's drawer will be held accused under Sec. 138 of N I Act, 1938. Even, a stop payment instruction to the Bank from the drawer of the cheque which was issued towards the discharge of any contractual obligation would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque would face legal consequences under Section 138 of the N I Act, 1938. A legal notice has to be served on the drawer of the cheque within 30 days of the instance of dishonor. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque irrespective of the reason behind the dishonor of the cheque and a chance to repay. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. So, on receipt of legal notice u/s.138 of the N I Act, you need to consult with an Advocate experienced in cheque bounce cases for guidance and steps. Feel free to contact our legal team to avail of our expert service to navigate the issue in the right way.
When a person issues a post-dated cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque is free to present the same for encashment on any date and if the cheque is dishonored or bounced for any reason, then holder of the Cheque can file a criminal suit against the drawer of the cheque under section 138 N I Act, 1938 within three months from the date on which it was presented in the bank. A post-dated cheque leaf, voluntarily signed and handed over by the Drawer of the cheque, which is towards some payment, would attract presumption under Section 139 of the N.I. Act and on dishonor of the cheque, the cheque's drawer will be held accused under Sec. 138 of N I Act, 1938. Even, a stop payment instruction to the Bank from the drawer of the cheque which was issued towards the discharge of any contractual obligation would attract presumption under Section 139 of the N.I. Act and the drawer of the cheque would face legal consequences under Section 138 of the N I Act, 1938. A legal notice has to be served on the drawer of the cheque within 30 days of the instance of dishonor. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque irrespective of the reason behind the dishonor of the cheque and a chance to repay. Cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. So, on receipt of legal notice u/s.138 of the N I Act, you need to consult with an Advocate experienced in cheque bounce cases for guidance and steps. Feel free to contact our legal team to avail of our expert service to navigate the issue in the right way.
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