Legal Question in Business Law in India

We are a pvt ltd company dealing in trading of home electronics where in i am the director with sole signing authorities on cheques etc.

We had a running account with a multinational company distribution of the products for mumbai and delhi territory from the year begining 2008.

We were operating on certain payment terms of 90 day PDC cheques and had no probelem for over a year since business started.

However,with the company not doing well in the country and change in their strategy,they started closing their branch offices,with drawing after sales/service support and started sending back their key expats dealing our accounts to their country back.

Moreover,for the business line we were having running account in india,their dubai oofice appointed another distributor for same line of business parrallel to our business.

considering the scenario and non clarity on business ahead and our liabilities in the market,we wrote several mails and we had wriitten/jointly signed minutes of the meeting with their key officials on our security and protection.

With no action and proper reply coming in from their Indian president(again an expat),we issuesd a stop payment letter to our banks in blocking all PDC cheques with prior notice given to supplier in official mails.

However,the company deposited all the PDC cheques of ours issued for April 2009 in the month of october 2010 and also deposited one security blank cheque given to them for opening the business transactions putting their own figure.(blank cheque is taken to open an account in the trade and is a general practice by most leading brands/companies in consumer durable trade).

With the affect of Stop payment by our bankers of all cheques,the company issued two rounds of notices through their lawyers at bangalore for which we appointed our lawyer giving/replied our point of view.

Accordingly,after november 2009,both the parties were silent till aug/sept 2010.the out of court settlement approach was initiated by the principal company from october 2010 and realising many loo poles in their position stand,they kept writing letters with Pre judice marked to us discounting their bills for final settlement.

Atlast,after few rounds of meetings and mails exchanged in jan 2011,we did not agree to their final amount and offered nearly 50% of their final claim to avoid a legal issue.

But the same has been rejected by them and they have issued threats of filing criminal case section 138 of stop payment.

I have few concers and need clarity to plan our action:

1.is section 138 stop payment is an non bailable offence?

2..What category of lawyer to be appointed to fight our case best?

Regards

MA

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