Legal Question in Banking Law in India

Re: negotialble instrument

a cheque bounce case u/s.138 can be initiated once the cheque has not been honoured! It is upon the complanant to prove there was a liability to pay the amount and the guineness of the cheque. The reason for giving the cheque may vary but that does not count - having known the effect of issuing the cheque you had given a cheque you are bound to honour it!

Re: negotialble instrument

Yes. Whatever may be the transaction, if a cheque is bounced, an action under Section 138/142 of the NI Act can be maintainable. Case laws are plenty on this point. Consult your lawyer.

Re: negotialble instrument

Yes, you may sue the defaulter under the provisions of S-138/ 142 of the Negotiable Instruments Act. However, the steps required to be taken under the Act i.e. issue of legal notice and filing of complaint must be done within the prescribed time frame otherwise the action becomes time barred.

Re: negotialble instrument

cheque bounce offence is same whether it is of interest or any other amount. so file case without any problem.

we dont give judgements here but u dont need any judgement on this point

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Re: negotialble instrument

If the cheque is boumced for any reason the proceeding u/s/138 N.I.Act can be initiated and it does not matter that on what account the cheque was issued.Consult any book on N.I.Act to get your answer.