Legal Question in Business Law in India

S-138, Negotiable instrument Act

I want to ask regarding my cheque which i issue in relation of a business deal.. Actually i made a mind starting a business in ahmedabad with a person.. That person is running a factory in ahmedabad.. He was intersted in selling his business.. V decided some terms & conditions in relation that deal.. I gave him 1,50,000 Rs cheque.. But we didnt sign any contract.. I gave him that chque on trust.. But on the sane eveninig he refused to go with same terms & conditions.. And went to bank for clearing that cheque.. When i come to know that he is doing fraud with me then i ceased my bank a/c & withdraw all the money in the morning... I had more than 5 lakh Rs in my a/c when i issued cheque.. Next day when that person went to bank that cheque was dishonoured.. Now he is theratninig me to go in court... I didnt sign any contract regarding this.. I want to know what is my legal right and will my case fall on s-138... Plz help.. Thanx..


Asked on 12/17/07, 8:22 pm

4 Answers from Attorneys
G. M. Gupta gmguptaandassociates

Re: S-138, Negotiable instrument Act

immediately send notice to him with the help of a lawyer. otherwise you will end up paying this amount.

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Answered on 12/20/07, 1:43 am
Sachin Sangare Private Practise

Re: S-138, Negotiable instrument Act

First of all, rush to a good advocate who is expert in the field of handling cases relating to cheque bouncing. Narrate all the facts and request him to send a legal notice to the person who presented the cheque, informing him that he has cheated you and that he has not kept his part of the agreement. Also narrate the fact that the said cheque was given as an advace to purchase the business of that person. Also narrate the fact that he has not kept his promise.Make sure that you send him the said legal notice before he issues you a notice u/s 138 of the NI Act. If in case he sends a notice on the ground that you have taken a loan from him, file a suit for specific performance of the agreement for purchasing his business in the civil court. Atleast you will have some backup. But unfortunately you have to appoint some good & expensive advocate in Ahmedabad if the Complaint is filed in Ahmedabad.

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Answered on 12/17/07, 10:29 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: S-138, Negotiable instrument Act

Issue him with a legal notice to the person whose business you wanted to purchase narrating that he has cheated you and has not kept his part of the agreement. Later you may file a suit of specific perfomance in the civil court.

Where is the complaint filed. If it is Ahmedabad then you may contact me .

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Answered on 12/18/07, 1:22 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: S-138, Negotiable instrument Act

your case will fall u/s 138 of ni act

give reply to notice thru an advocate

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Answered on 12/19/07, 11:04 am


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