Legal Question in Banking Law in India

03.02.2013

Dear Sir / Madam,

(Nehru Nagar, Kurla East, Mumbai)

ECS Debit to A/c is an alternative modus operandi to the issue of post dated cheques for repayment of personal loan as per the Negotiable Instruments Act. In both the methods, the borrower accepts and commits performance on the contract. The borrower is liable for non-performance, and is an offence in the event of failure. Punishment is decided by the Judge hearing the matter.

Regards,

FCA Prashant Chavan

Mumbai

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You can be punished with imprisonment for 2 a term which may extend to two year, or with fine which may extend to twice the amount of the cheque, or with both; as provided under Sec. 138 of the N I Act.

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