Legal Question in Banking Law in India

Cheque Bounce

I have presented one megaevent in Amravati part of Maharashtra.That event went flop and cheuqes I have issued are getting bounced.I don't have money in my account.My wife and two kids ( 5 yrs old daughter & 1 year old son ) are there.

What should I do? I am the only earning member of my family.I don't want to go to jail.

Please help me.

Thanks.


Asked on 6/12/03, 9:09 am

2 Answers from Attorneys
Rajendra Babbar Rajendra Babbar & Associates

Re: Cheque Bounce

From your question it appears that you had given the cheques in discharge of your buisness liabilities. Hence in such case if the cheque bounces it is a criminal offence under Sec.138 Negotiable Instruments Act, and is punishable with 2 years imprisionment and also fine up to double the amount of cheque. All seperate cheques if bounced may constitute seperate offences. Hence the remedy left is to pay the amount of the cheques.Rajendra Babbar, Advocate-Bhopal.

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Answered on 6/22/03, 1:37 pm
Anil Kumar Tandale T.Anil Kumar

Re: Cheque Bounce

Under sections 138 to 142 et al of Negotiable Instruments Act, once any cheque is issued, it raises presumption of being indebted to the payee of the cheque[including its holder in due course]. The defences are reduced to nil. The querist would be advised to raise funds from alternative sources and pay up the payees. Otherwise he should file petition to declare him insolvent under the Provincial Insolvency Act, and seek protection order against all the creditors including the payees of the cheques in question.

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Answered on 6/13/03, 8:42 pm


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