Legal Question in Banking Law in India

Sec 138 of Negotiable instruments act

Sir, I had a Amex credit card and I had issued cheques for the payment of dues, subsequently the cheques wer dishonored because i did not have sufficient funds in the account. But I have paid the sum in cash for all the cheques, becasu as you know the bank will not let us go without payment. All this happened in 2003. then I went for a final settlement for whihc I issued 5 cheques, these also bounced but i paid cash within 30 days of the cheque bounce the final settlement cheque was 08/10/2003 and I cleared the due by 30/10/2003. Now the Amex legal dept is claiming to have a NBW under sec 138 and is harassing me for furhter payment. What is the remedy?. I have not taken the returned cheque back. It lies with the bank only. Can you give me your suggestions.


Asked on 2/17/07, 4:13 am

4 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Sec 138 of Negotiable instruments act

The legal department cannot have the NBW in their pocket and threaten you. Issue a lawyer's notice with the xerox copies of the receipts for the payments made and tell them that the cheques on the basis of which they claim to have prosecuted you are no longer valid and the underlying debt has been discharged otherwise and tender the proof of the payment with you. If they give you the case number and the court from which they got the non bailable warrant, more that court thru a lawyer for recall of the warrant and enter the defence for the prosecution

Read more
Answered on 2/18/07, 8:37 am
SUMAN KHARE ADVOCATE SUMAN KHARE

Re: Sec 138 of Negotiable instruments act

at the time of final settlement they must have given you the payment recipt for same and account closed memo. produce the xerox copy of it along with your reply to the Amex legal dept. and for further contact your nearest advocate.

Read more
Answered on 2/17/07, 6:19 am
G. M. Gupta gmguptaandassociates

Re: Sec 138 of Negotiable instruments act

your case is a bit ticklish and i need to have more details and we need to talk a lot more so if u can call me then call at 9891445855 to discuss the matter

Read more
Answered on 2/18/07, 12:56 pm

Re: Sec 138 of Negotiable instruments act

Issuance of NBW and service of same is court process and no party can keep the same in pocket.In fact company is blackmailing you.It is advisable that you take the assistance of a lawyer and enquire from the court to ascertain the position.If there is NBW against you then move the application For cancellation of NBW.you also lodge a complaint in court complaining the illegal act of blackmailing by the company.Take stern action against the officials of the company. Go Ahead.

Read more
Answered on 2/17/07, 12:05 pm


Related Questions & Answers

More Banking Law questions and answers in India