Legal Question in Banking Law in India

respected sir or madam

I have an loan from co oprative bank, for some reason i have fail to clear my loan on given time, now they had gone to district court against me by bouncing my blank cheque which given as a security at the time of applying the loan from bank, i want to know that 138 is applicable on me if the cheque given as security bounced.

i saw some post on internet saying " The Bombay high court has ruled that banks cannot prosecute borrowers under the stringent anti-cheque bouncing laws if blank post-dated cheques issued by them as collateral security are dishonoured"

so pls help me

darpan bakshi

nashik

9657523423


Asked on 2/02/13, 10:53 pm

5 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

03.02.2013

Dear Darpan,

(Gandhi Nagar, Nashik, Maharashtra)

In the event of default, the Co-operative Bank is well within their right to write up the net outstanding loan amount on the blank cheque and present it for clearing and payment. It is covered under Section 138 of the Negotiable Instruments Act.

Please mail me the link of the webcast of the Mumbai High Court ruling at [email protected]

Regards,

FCA Prashant Chavan

Mumbai

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Answered on 2/02/13, 11:26 pm
Somnath mukherjee

i think you are right,but the bank can prosecute you under sec 138

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Answered on 2/03/13, 10:00 am
Sanjay Kalra Sanjay Kalra & Associates

The Bank are suppose to get their loan money back from the borrower and they can take a recourse through DRT alone......... Please check Sanjay Kalra and Associates on the internet to know more about your query and the legal services we are rendering for our clients from all over the World.

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Answered on 2/03/13, 10:40 pm
Jayesh Desai Jayesh Desai

Yes, bank can do so.

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Answered on 2/05/13, 12:40 am


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