Legal Question in Banking Law in India

Dear Sir,
I am authorized to issue a cheque of up to Rs. 300000/- for my company a/c. By mistake in Jan-11 I issued a cheque of Rs. 3, 23, 445/- to a party which was dishonored by Bank hence we done the payment of same amount on smae day through RTGS to the party. We asked verbally to party to return the cheque but they did not return the cheque. After completion of service job he asked for more payment which is not due hence we did not agree. Then he started blackmailing to us by saying that he will present the cheque again in bank henc we gave istruction to bank for stop payment for that cheque. He presented the cheque again in bank but cheque did not clear in bank due to stop payment instruction. Then he sent the notice for paying the amount Rs. 3,23,445/- in response we replied to notice. But still he filed the 138 case in court against us. In complaint he mentioned the false invoice to prove the liability of Rs. 3,23,445/- the invoice we never received. please advise wheather 138 is applicable for above.

Asked on 1/02/12, 3:56 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

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question of applicability of Sec.138 is of no relevance in your case. Any cheque bouncing, the payee has the avenue to complain under Sec.138 of N.I.Act. It is for you to prove t hat the cheque in question is not in discharge of any valid debt and is not supported by consideration. Prove that whatever was truly due to the payee has been paid. Engage a good lawyer and fight out the case.

Answered on 1/02/12, 6:34 pm

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