Legal Question in Consumer Law in India

Sir I hired a commercial vehicle from a private finance company .Agent of the company demanded 4(four)nos. blank signed cheque for the purpose of documentation though it was not mentioned in the AGREEMENT .Due to the GLOBAL FINANCIAL CRISIS I could not pay installments regularly ,became defaulter .Company ceases the vehicle and sold it and appointed Arbitrator.I represented .But before any direction from the Arbitrator,company used one of the blank cheque and when dishonoured registered a case U/S-138.

(I) Should the company use cheque after 2years ?

(ii)Can a case of fraud be registered ?


Asked on 8/16/10, 3:33 am

2 Answers from Attorneys
Devansh Bhardwaj Devansh Bhardwaj

I didnt understand when as to how the company took over the posession of the vehicle and then sold it off. Secondly after selling the vehicle when recovered the amount then what for the Arbitration?

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DEVANSH BHARDWAJ

ADVOCATE

LUCKNOW

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Answered on 8/16/10, 7:57 am
Mantosh Sarkar M.Sarkar & Associates

1) Security Cheque never amounts 138 N.I. Act,it is well settled in a high court case

recently in Bombay high court.

2) Surely you can sue them and ask for damage and compenation before they have

done injustce and before completing arbitration process in wrong and you have a

very good ground,consult a lawyer, Best wishes.

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Answered on 8/16/10, 8:17 am


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