Legal Question in Banking Law in India

Cheque Bounce Matter
I ahve given blank signed cheque to the bank which was supposed to be used by them if I failed to pay EMI. The bank utilised the cheque by putting the date on it and filling the amount through their branch at MALAD (W), Mumbai. The cheque dishonoured due to insufficient funds. The bank sent a notice thru their lawyer which was returned unserved due with the remark NOT FOUND. The bank filed complaint at AHMEDABAD COURT and the summons has been issued by the Court and has been received by me. (1) Can the bank initiate proceedings without service of Notice (2) Can the complaint case of dishionour of cheque at Malad Mumbai Branch be filed at Ahmedabad. Please advise.

Asked on 1/01/09, 11:03 pm

6 Answers from Attorneys

J. Radhakrishnan independent Practice

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Re: Cheque Bounce Matter

The courts which have jurisdiction are (1) where you permanently reside or your address there

(2) where the cheque was given

(3) where the cheque was returned.

If none of the things had happened within Ahmedabad jurisdiction, the prosecution is bound to fail. Regarding service of notice, if it is sent to your recorded address, 'not found' endorsement has no effect. Please access the supreme court website for its judgments under Sec.138 N.I.Act. There is a recent case where the court says that the place of service of notice matters rather than the place from where the notice is given

Answered on 1/02/09, 9:47 pm

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Vishwa Arya Arya & Co.

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Re: Cheque Bounce Matter

Service of notice is a pre-condition. As the cause of action arises only on expiry of 15days from date of service. The bank may have alleged the required service upon you (say under cert. of posting) but then onus would be on you to prove that you were never served with the notice.

About your other question, you have not mentioned from where the cheque was issued. The jurisdiction depends upon:

a. where you or your office is located

b. Where your bank is located

c. Where the holder's office is located

d. Where the holders's bank is located

In addition, from where the notice was issued.

so, if you would know any of the above condition is there.

Vishwa Arya

Answered on 1/01/09, 11:54 pm

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Homi Maratha N.N. Maratha & Co.-Advocates

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Re: Cheque Bounce Matter

Hello.

If the notice is not received by you and its due 15 days they can initiate action on you but on the other hand you have to prove that you were never served a notice.

If you are from Ahmedabad you may call me up.

Answered on 1/02/09, 1:45 am

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Prof.Somnath Mukherjee s.mukherjee associates,09874053359

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Re: Cheque Bounce Matter

The bank can initiate proceeding but it will be a good defence.Yes if the head office of the bank is Ahmedabad and the loan is sanctioned from here it can file the case

Answered on 1/03/09, 8:09 am

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