Issuing cheque from an NPA account termed as fraud or cheating?
1. My cousin issued me cheques from a NPA account and we realised on depositing that this account is NPA isnt that a case of fraud or cheating?
Matter in Brief:
He had purchased raw material through my agency, as we had financed him with verbal terms and conditions of interest and payment return.
We have all the proofs that we had made payment on his behalf to the supplier we even acted as agent in the transaction and finance partners. We have bank acknowledgment on the bank letter head confirming that this payment was made to the supplier against the bills of my cousin.
When ever we make payment or channel finance a customer we take acknowledgement from the supplier as well that if they received the payment through our account for a customer via email and our company letter head we take stamp and signature.
We had informed him over the phone and via email that we are presenting the cheque and our bank and branch is same so withing 15mins we realised that his account is NPA as no cheque was accepted or honoured and then he smartly replies that I did not inform to deposit the cheque as my account is NPA
2. Please update me what facts would be required to prove this case as cheating or fraud as now he says he doesnt have the money but I even have proof that on 30th September he has made an EMI payment of Rs 4.6 lacs for his investment in Bangalore, making investments in properties and for hosting parties in night clubs he has money.
As we were ready to take payment instalment also but he has not given us a penny since 6 months or more.
Asked 8 years ago in Criminal Law
Religion: Hindu