Legal Question in Banking Law in

Mr A issue a cheque in the year 2002. it was security cheque given to the money lender. Mr A had already paid loan amount in the same year. but at the time of asking cheque to the money lender. he refused to give and told to Mr A that "Cheque is misplaced".. No date was mention on the cheque only sign of Mr A is there. then Mr A closed that bank account. in the year 2009 that money lender had deposited cheque in the bank and send a notice to Mr A stated that "Cheque is returend due to insufficient balance".. But we have a proof about our account closed in the year 2002. so Section 138 of NI act is applicable??? We also have written statement from the bank manager that - He retured that cheque but he gave reason -"ACCOUNT CLOSED". so that money lender can send notice us 138- " Insufficient balance"


Asked on 9/27/10, 1:15 am

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

yes

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Answered on 9/27/10, 4:52 am
J. Radhakrishnan independent Practice

as long as the cheque was signed by you,irrespective of the account having been closed, A will be liable to be prosecuted under Sec.138 N.I.Act even when it has been returned with the endorsement of account closed. Where is the proof that the cheque was handed over in 2002?

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Answered on 9/27/10, 12:07 pm


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