Legal Question in Criminal Law in India

My son Mr.Z is into share business ,with other two member.It is a private firm.One Mr.X wanted to invest in the share and give the cheque of say Rs.15,00,000/- for investing in the share.The cheque was issued in the name of Mr.Y ,not Mr.Z.My son only collected the cheque and gave to Mr.Y,which he invested in the share market through his D Mat account,where the total loss occurred.

Mr.Z was called to police station and was told to give 20 cheques each worth of Rs.50,000/- to Mr.X.

Though We have given the cheques my son is not involved in any of the transactions .

Under this circumstances what happens to Mr.Z if his cheques are dishonoured or bounced back.

Kindly reply


Asked on 1/31/11, 1:02 am

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

why Mr. Z issued the cheques under police pressure. now in case these cheques bounce or payment is stopped, a complaint under negotiable instruments act may be filed. you may involve Mr. Y into the transaction as the cheques were issued in his name and you may file a criminal complaint against X and the concerned officials for criminally intimidating your son for issuing the cheques.

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Answered on 1/31/11, 1:36 am
Vishwa Arya Arya & Co.

by issuing cheques z has acknowledged the liability. burden will be on z to prove that the cheque were issue under duress for there was no liability.

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Answered on 1/31/11, 3:23 am
Shrichand Nahar S.V.Nahar, Advocate

With series of decisions of the supreme court and high court, it is well settled that initial burden is on the complainant to prove legally enforceable debt/liability.

If complainant fails to prove legally enforceable debt/liability, then offence under section 138 NI Act is not made out.

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Answered on 2/01/11, 12:51 am


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