Section 138 - My friend has taken a loan
1 year ago
My friend has taken a loan and has submitted blank cheque as security. She couldn't close it and entered a settlement with the bank for 1.5 lakhs and gave 3 cheques of 50 thousand each. Out of the three cheques 2 were encased by the bank but she lost job during covid and could not pay the last cheque amount.
Now bank has deposited the first security cheque in bank for total amount (principal and interest) instead of the last 50 thousand cheque and filed a case under section 138 of NI act. I seek advice on what should be our line of action now.
Please help.
If a cheque bounce case under Section 138 of NI Act has been filed then first of all your friend needs to take a bail and during the pendency of case try to pay the due amount so that the bank can withdraw the case and end it all.
Subhashis Paul
Responded 1 year ago
Jagannath S Pawar
Responded 1 year ago
A.You can contest the case well and simultaneously apply for compounding of offence by paying cheque amount of 50000. Regards other demand of entire payment it is to be contested on merit wherein you have bright chances of winning as security cheque should not be encashed once loans are cleared or near closing through settlement process like in your case. They must be taking recourse to the demand of entire payment under the pretext that settlement has failed due to bouncing of 50000 cheque but ultimately on merit you should win if contested well in court of Law. Concrete and conclusive advice can only be given once your documents are seen.
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