Legal Question in Business Law in India

138 NI Act and 420 IPC

My partner (complainant) and I started a business based on mutual understanding, without signing any documentary agreements or setting up a company officially.

I had received a certain amount in cash & cheque from him, for which I had provided duly signed receipts on my company letterhead. However, after 4 months of our partnership he suddenly stopped communication (and the finance), which I later understood was a part of the plan.

Now he has implicated me in a case under 138NI and 420IPC where he has somehow acquired and used 3 cheques of my relative (Accused #2) and framed a case based on forged evidences. Also, he has forged a letter mentioning it a ''loan'' with interest of 18% p.a whereas it was a 70:30 partnership.

The only signatory of the cheques in question is Accused #2. I'm not involved with him in any manner.

What I'd like to know is:

1. Is it that 138 NI applies to Accused #2 and 420 IPC to me, OR both to both of us OR both to Accused #2 who is the only signatory of the cheques?

2. If the documents and signature are indeed proven to be forged, will I be acquitted from the case from both 138 NI and 420 IPC or just 138?

Many thanks in advance.


Asked on 1/21/09, 9:32 am

3 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

Re: 138 NI Act and 420 IPC

you may lodge a counter f.i.r against your partner for cheating you and forging the documents. regarding his case, u need to procure the anticipatory bail stating the fact mentioned herein.

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Answered on 1/21/09, 11:59 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: 138 NI Act and 420 IPC

You can show the above facts and get out of it. If possible contact personally for consulting(chgs Rs 100/- only)

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Answered on 1/22/09, 9:06 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: 138 NI Act and 420 IPC

It may not be proper to speculate on a pending litigation. The result of trial will depend how well your conducted and what kind of defence is produced by you in court.

At this stage it may be better for you to concentrate on your defence under the able guidance of your counsel.

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Answered on 1/21/09, 2:42 pm


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