Legal Question in Banking Law in India

Re: negotiable instruments act, sec 138

These days the criminal courts take cognisance of complaints under Sec.138 of the Negotiable Instruments Act leisurely, more for the reason, there are other pressing cases filed by the State under the criminal law.It is possible that the complaint under Sec.138 of the N.I.Act was filed in time. What you have to do is to engage a lawyer and appear on the date fixed for your appearance and enter the plea of 'not guilty' and defend the case on the ground that the cheque in question is not supported by consideration and that it is not in discharge of any of your liability, in that the contractor has failed to complete the construction as contracted. If you fail to appear and defend the case before the Court which has issued the summons,you run the risk of being arrested. Please consult a lawyer at the place of trial and proceed further.

Re: negotiable instruments act, sec 138

Offence under Section 138 is complete once the cheque is returned unpaid and susequent notice is not complied with.

it is presumed that the cheque was issued for consideration, however it is the issuer of the cheque who has to prove that there was no liability.

however procedurely, once u receive the notice from the Court, it is compulsory to appear before the Court and take a bail as the offence being criminal one.

at later stages it can be proved that the there was no liability and the relevenat information may be provided to court under Section 43.

for further clarification, please feel free to revert

Re: negotiable instruments act, sec 138

face the trial and tell the details of transections in the court.

you need to give evidence that you issued the cheque for the remaining work which was not completed by the contractor so the payment was stopped.

Re: negotiable instruments act, sec 138

It is to be seen the terms of contract between you and contractor. However since a acse has already filed then it would be appropriate to engage a lawyer and appear in court.You can in trial the contents as stated by you and can produce witnesses and evidence in this regard.