Legal Question in Banking Law in India
I have taken a Business Loan from a Person and issued a undated cheque of similar amount 10 years ago. after 5 years, I closed my bank account , and opperating another account in differant Bank. Now can my creditor still present cheque and what legal action he can take against me on dishonour of cheque in current year.
5 Answers from Attorneys
if you have the evidence of having issued the cheque 10 year back then he may not be able to take any action unless you have given an acknowledgement of debts.
yes, he can present the cheque and sue you under 138 NI act]
138 is not maintenable, if you prove that cheque was issued as security and civil suit is barrad due to limitation. So dont worry.
Your further clarification is welcome at nominal fee at;
Advocate
PB. & HRY. HIGH COURT CHANDIGARH (INDIA)
With Regards
Yes, he may take action under section 138 of N.I.Act.
Action under section 138 is possible if the debt is not yet cleared by you.
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