Legal Question in Criminal Law in India

I am a student and I also have some curiosity about law. I want to ask that if any person / any company provide a loan to any borrower and for that if they take some signed blank cheques as a security cheque from the borrower there after can they send those signed blank cheques to the borrower's banker for encashment after three years of having those cheques from the borrower? If those signed blank cheques get dishonoured after three years of having those cheques by the loan provider from the borrower, in that case can the loan provider file a criminal case u/s 138 of negotiable instrument act against the borrower?

Asked on 3/07/11, 7:25 am

Vishwa Arya Arya & Co.

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it will be a matter of evidence if the cheques were given three years back. If it can be successfully shown that, then, 138 would be not made out.

Answered on 3/07/11, 7:40 am

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