Legal Question in Banking Law in India

Negotiable Instrument act

In continuation to my earlier querries regarding bouncing of cheque of Govt. corporation who has 100% share holding of govt. ( I am not a signatories of the cheque or incharge of the day today affairs of the company)please reply on the following question/ or i have to use the following grounds when the trial start

1.At the time of PDC presented to the bank, one signatory has retired from the service and later on expired and corporation has changed the signatories of the account . Even though the funds were available in the account the cheque could not be encashed/honoured for want of change of signatories.

2.corporation has already closed the account before presentati0n of the cheque and infomed the complainaints in advance.

3.Bank has informed the complainaints that insufficient balance and account closed instead of the account closed. It is a fault of the bank side to mentioned the reason that insufficient balance.When the account closed , the quesition of insufficient balance does not arise.

Bank has also not informed the reason of change of signatories.

3.When the one signatory expired, the liabilities of the cheque amount goes to whom


Asked on 10/13/07, 10:41 am

6 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Negotiable Instrument act

You have got a good case and definately you will get the justice at the end of the trial. You can approach to the consumer court regarding the same matter.

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Answered on 10/14/07, 3:40 am
J. Radhakrishnan independent Practice

Re: Negotiable Instrument act

If you are not the signatory of the cheque, you cannot be prosecuted. But the Corporation which has issued the cheque cannot escape liability or those who are arrayed as in charge of the day to day affairs of the corporation. Account closed does not make any difference to the situation. The drawer and in case it is a corporation those who are in charge of the day to day affairs, arrayed as such are liable for prosecution and the complainant can succeed.

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Answered on 10/14/07, 6:54 am
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: Negotiable Instrument act

your case has good merit however you will get justice finally at the end of trial . But in the meanwhile for deficiency of bank's service you would be required to approach to consumer court and criminal court

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Answered on 10/13/07, 11:04 am

Re: Negotiable Instrument act

The liability lies on persons who were managing the affairs of the company.It is better that you consult with all facts instead of putting your query in pieces which may be fatal for you.In case of need contact with all details.Professional charges are applicable.

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Answered on 10/13/07, 12:25 pm
Amit Shukla AS and Associates Legal Services

Re: Negotiable Instrument act

Pls contact personally.

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Answered on 10/13/07, 1:37 pm
G. M. Gupta gmguptaandassociates

Re: Negotiable Instrument act

if you have not paid the money and the money is payable then such things will not be that much material.

however the death of the signatory is an important fact in this case and you can save yourself on this point.

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Answered on 10/13/07, 2:04 pm


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