Cheque bounce and DRT
3 months ago
I received a cheque bounce notice with an incorrect mention of my father's name. The bank filed a 138 NI Act complaint based on the same inaccurate information. A bailable warrant has been issued under the wrong father's name. The notice falsely claims the cheque was handed over in 2023, but it was given as additional security during property reappraisal in 2018. In 2019, I informed the bank to return the cheques, and payments were stopped. The account turned NPA, leading to a pending suit in DRT since 2021. Despite no settlement in DRT, the bank filed this case. Is the defective notice valid, and can the warrant be valid with the incorrect father's name? Can the bank file a case without DRT settlement?
A criminal proceeding under Sec.138 of N I Act initiated by the Bank is not maintainable when recovery of debt proceeding is pending before the DRT. So. to quash the criminal proceedings you have to approach the High Court.
A cheque bounce notice with incorrect information, such as the wrong father's name, may affect the validity of the notice and subsequent legal proceedings. The Negotiable Instruments Act, 1881, including Section 138, requires a legally sound notice before initiating proceedings. If there are inaccuracies in the notice, it may be considered defective.
Additionally, the bank's ability to file a case without settling the matter in Debt Recovery Tribunal (DRT) could depend on the specifics of the case. It's essential to check whether any legal prerequisites or conditions were violated by initiating the case while proceedings are ongoing in DRT. However, discrepancies in the notice, including the incorrect father's name, may provide grounds for challenging the validity of the case.
To address these concerns, it is advisable to consult with a legal professional who can carefully review all relevant documents, including the notice and the warrant, and provide specific guidance based on the details of your case. They can help determine the legal standing of the defective notice and advise on the best course of action to address the situation.
Thankyou
You may directly challenge before High Court the criminal proceedings which are based upon the cheque bounce and thus you may get an order of quashing of cheque bounce proceedings.
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