Legal Question in Banking Law in India

Cheques Bounced

I am a stock sub-broker. I had a client who issued 3 post dated cheques to me for the loss he suffered in Stock Market transactions in May 2006. The trades had been done in my own personal trading account & not in his trading account as the client didn't have sufficient margin for Futures trades in his own account. On the date of cheques , all the 3 cheques bounced for the following reasons:- First Cheque - Insufficient Balance , Second Cheque - Insufficient Balance & Third Cheque - Signature Mismatch (In case of third cheque, the person gave the cheque from his wife's account but signed it himself but he wasn't the joint owner in that account). Now the client claims that I can't do anything legally as the trades were done by him in my account & not in the client's account. Also, he can easily claim that the cheques were issued as loan to me. He also says that he can also claim loss of cheques. On Second & Third cheques, I had written my name in my own writing & the person had written the amount & signed it. On First cheque, the client had written my name & amount himself & signed it. Please advise the legal remedies I have & how should I proceed. Regards.


Asked on 9/23/06, 12:39 pm

2 Answers from Attorneys
Navin Kumar Naashree Associates, Advocates

Re: Cheques Bounced

You should go ahead and file a complaint under section 138 of N.I. Act.You can also initiate recovery proceedings under order-37 of Code of Civil Procedure.

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Answered on 9/23/06, 2:39 pm
Jitendra Kumar Kumar Pandey & Co.

Re: Cheques Bounced

Without giving any second thought you file criminal complaint under Section 138 of N.I.Act in respect of the first two cheques and in respect of the third cheque file criminal complaint under Section 420 for cheating.For procedural compliance consult a lawyer in your area.

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Answered on 9/25/06, 1:42 am


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