Legal Question in Banking Law in India

Cheque returned unpaid demand notice under NI 138

Opened SB a/c in 1992 with three names Mayur,Kanu and preety, to signed cheques jointly by any two, for staff savings club . Mayur is main A/c holder and maintain all transactions. As usally Kanu gave signature on blank cheques. as 2nd signatory . We fully trust on Mayur.. We found descriptions in transactions and Kanu and Preety deleted names from A/c in 2001. Mayur has borrowed money from many persons by giving this A/cs cheques as security, as Kanu has signed the blank cheques in all manners. From 2007 Two cases are pending with criminal court on Kanu as he is 2nd signatory. One cheque was returned with reason �Insufficient fund�. After deleting the name from a/c.one cheque is returned on 28-05-2008 with the reason �Refer to drawer � and the demand notice under NI 138 received on 30-06-2008. Mayur has made an affidavit on 12-12-2006 with Notary that all transactions in this a/c has made only by me and other two are unknown about all transactions and all cheques given by me to others is only my liabilities.My questions are 1.With the affidavit can we get protection in the court.

Can Kanu lodge a FIR against Mayur for cheating and with FIR can Kanu get protection in the court.The reason Refer to drawer how court will act ?


Asked on 7/01/08, 12:39 pm

2 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Cheque returned unpaid demand notice under NI 138

depends on the court whether to accept the affidavit. Kanu can lodge criminal case if acquited or discharge by the court on affidavit.

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Answered on 7/15/08, 6:17 am
J. Radhakrishnan independent Practice

Re: Cheque returned unpaid demand notice under NI 138

Since the documents relating to the case in question have to be perused,and discussions have to be held with those among the three who claim innocence, it is advisable that you consult a local lawyer in the matter. Your question and details are also not clear.

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Answered on 7/01/08, 1:46 pm


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