Legal Question in Banking Law in India

Re: Regarding Negotiable instruments Act 138

1.Both the company andX M.D.can be prosecuted. since the company cannot be imprisoned, the M.D. will suffer the sentence of imprisonment if imposed on the case if proved. 2. Though the company is the offender,since it is an impersonal body, the person in charge of its day to day affairs, the M.D.will be liable. 3. Requirements are notice to be issued within 30 days of the bouncing of cheque requiring payment within 15 days of the receipt of notice. If there is default, the case under Sec.138 has to be filed within 30 days of the receipt of notice by the company/M.D.

Re: Regarding Negotiable instruments Act 138

Company and Directors both.For more advice pls contact personally.

Re: Regarding Negotiable instruments Act 138

signatories are liable generally. requirements are normal

Re: Regarding Negotiable instruments Act 138

1) The proceedings can be initiated against all directors who are resposnsible for conduct of business

2)Company , however for the purpose of sec 138 of NI Act culpability imposed on directors or who are repsonsible for conduct of business

3) A notice demanding money due under cheque should be preceded before prosecution.This mmust be done with in 30 days of reciept of dishnour memo from bank

normaly cheque issued towards security cannot be presented unless drawer request drawee to present cheque.Therefore it is valid defence for company to raise plea that cheque issued towards security.However onus to prove same rest on company

Re: Regarding Negotiable instruments Act 138

I am pressuming that you have retired/resigned from the post of directorship and the same is communicated to the Registrar of Companies by fling Form 32 before the bouncing of cheque and in the records of ROC you have retired/resigned as a Director of MD. In such case section 141 of the NI Act states that at the time the offence was commited (i.e. bouncing of the cheque)every person who was in charge of, and was responsible to the company for the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. This section is interpreted in the judgement of the Supreme Court in the matter of SMS Pharmaceuticals Ltd [AIR 2005 SC 3512]. In your case if at the time of bouncing of the cheque you prove that you were not a MD of the company than, may be you could be accquited of the offence.

Re: Regarding Negotiable instruments Act 138

1. Against the company,its directors who are responsible and managing business.

2.Both.

C.Deposit of cheque,dishonour of cheque,issuance on legal notice within one month,failure of company to comply with notice,filing of complaint.

In case of need contact with all details.Professional charges are applicable.

Re: Regarding Negotiable instruments Act 138

(1) Directors are responsible.

(2) Both of them are responsible.

(3) 30 days.

Re: Regarding Negotiable instruments Act 138

The Company and its all concerned directors who are responsible for day to day business are responsible for issuance of cheque and action under Section 138 of NI Act

Re: Regarding Negotiable instruments Act 138

The company being a pvt ltd the proceedings u/s 138 of N.I act will be initiated against X on behalf of the company.

The company is liable under the act.X is not personally liable under the act.

A notice of demand has to be given to the company thru an advocate. If within time specified in the notice the company fails to pay the amount of chq then complaint has to be filed in the court