Legal Question in Banking Law in India

Negotiable instrument act 1881 section 4 ,5, 6 and 20

in section 4 and 5 of negotiable instrument act certain person and certain amount is written and in section 20 it is written that wholly blank instrument can be given, now I want to know if a creditor takes a blank cheque from the guarantor of a borrower and borrower is not paying the amout ,can the said cheque taken from the guarntor can be filled up for remaing due amout now and can be presented in bank for payment and if by chance it is honoured by bank ,can the creditor be prosecuted for section 420,120b,467 and 468 of Indian penal code for getting the amount and payee and date written on the cheque and getting the amount and at the same time suppose the cheque was dishonoured can guarontor be prosecuted under section 138 of negotiable instrument act and can the said gurantor make an application under section 190 of crpc against creditor under section 420,120b,467 and 468. And if said guarantor has made an application under section 190 crpc for crime under section 420,120b,467 and 468 ,can creditor approach the court and if yes under which section and if not what should he do ?


Asked on 12/12/04, 2:57 pm

3 Answers from Attorneys
Raja Selvam Selvam & Selvam, Advocates & Consultants

Re: Negotiable instrument act 1881 section 4 ,5, 6 and 20

Hello Sir,

The person who posses the Cheque can present it for payment under law. There may be certain exceptions. Whether the cheque presented is honoured or not is not the question.

In case of any clarifications do mail us.

reagrds,

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Answered on 12/12/04, 11:54 pm
Mohit Suri Mlegal: The International law firm in India

Re: Negotiable instrument act 1881 section 4 ,5, 6 and 20

As far as the creditor is concerned he can present the check and proceed U/S 138 in case of dishonor.

Yes the guarantor can proceed against the creditor if there is a voilation of any clause of the contract.

Please feel free to write to us if you need to discuss your options in detail.

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Answered on 12/13/04, 1:44 am
Vivek Anand M/S.VIVEK ASSOCIATES

Re: Negotiable instrument act 1881 section 4 ,5, 6 and 20

Yes, the contract if mutually binding can be enforced by either of the parties and that too under Sec.138 the liability is fixed if the ingredients of the said Section is established.

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Answered on 12/14/04, 9:21 am


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