Legal Question in Credit and Debt Law in India

NI 138 act

I made an legal agreement for selling my computer based code for buiseness against royalty money with some propiretery firm. after one year the firm tried to copy the technology and stopped my payments. I also forced for the dues and stopped the delivery of code for ongoing buiseness.The firm threatened me to charge with a case of theft, called the police and press reporters and made a pressure. i was forced to settle the matter.a compromise was done in writing in police post, with two cheques of 75k and 125k from me for assurance of full support of me in current buiseness depending on my technology. but in next move, the firm tried to encash them, and i stopped the cheques. they sent me a notice for payment, stating that they had lended me some friendly loan.I responded via advocate, now they had moved to court with same dialouge of friendly loan reversal. Can this 138 act may be misused by criminally inclined brain in such a manner, where there in no legally enforceable debt or other liability. I had never taken any loan, I had the copy of agreement and the copy of compromise, which doesn,t mention any cheque. Plz advice, what needs to be done.


Asked on 9/16/07, 10:00 am

2 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: NI 138 act

yes sec 138 N.I. is misused sometimes. well in this case you have got an oppurtinity to prove lending the money.

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Answered on 9/17/07, 1:22 am

Re: NI 138 act

These days 138 N.I.Act is being misused.There is lapse on your part that you have not get mentioned the said two cheques.Company has to prove lending of money and you have opportunity to rebutt the same.In case of need contact with details and relevant documents.Professional charges are applicable.

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Answered on 9/16/07, 11:43 am


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