• Blank dated but signed non-CTS cheque with a/c payee

Experts,

I've 'X' blank dated non-CTS IDBI cheques for 'Y' Lakh amounts each, are duly signed and filled-up except the DATES.

Person 'A' who issued this cheques to Person 'B' few years back in exchange of some money transfers from account of 'B' to 'A'.

Now since 'A' denied to pay back the money, 'B' has registered fraud complaint and in turn FIR and put 'A' behind bars where in FIR has NOT mentioned any blank dated cheques which were given by 'A' to 'B'.
 
Now 'A' is out on bail by Supreme Court and is under trial in lower court.

Query- 
1] Can 'B' put Dates (different ink and handwriting) on these blank non-CTS cheques and put them in Bank, and once it gets bounce, can send notice and invoke Section 139 NIA?

2] Lawyer can make a script like these cheques were given by 'A' to 'B' as a settlement for the on-going trial after he got out on bail or You can suggest some better script to make-out a case for Non bailable warrant against 'A' under NIA Sec 139?

3] Please suggest any risk to 'B' in future if he do this act For e.g: Any kind of fraud, cheating case against him if he unable to justify the possession of cheques and dates put by him on the blank cheques and of any other wrong doing to put 'A' behind bars again?

4] Please remember there is already trial on-going on 'A', where 'B' has already witnessed and all statements recorded infront of judge and cross-questioned as well, post this new case (Sec-139) on 'A' from 'B' can hamper or affect the ongoing case? Also it's 'B's mother who is prime-victim and lodged FIR on 'A' fo r which he is under-trial.

5] Since we don't know any property owned by 'A' are unable to put Civil Suit. How we can use this blank dated cheques efficiently to cause pain to 'A' like we had suffered in past, if we have any recovery mechanism available when property/possession of 'A' is not known?

6] Can lawyer of 'A' send these cheques for Forensic and any harm it's outcome can cause to 'B' or can weaken the on-going trial against 'A' party?

Many thanks in advance as always!!!
Asked 7 years ago in Criminal Law
Religion: Hindu

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4 Answers

1.If the B raises allegations of non payment and hence case of cheating then any attempt of encashing the cheque by putting the date would weaken his case considerably

2. Cheque if drawn out of legal settlement and then dishonoured does not attract the rigours of 138 NI Act as held by the supreme court.

3.Ask A to inform the Bank not to honour those cheques. If A used cheques subsequent tho those cheques lying with B then case of recent handover of those cheques by A to B would go.

4. Contest the case vigorously.

5.sending those to FSL is a good option.

Devajyoti Barman
Advocate, Kolkata
22824 Answers
488 Consultations

5.0 on 5.0

once blank cheques have been issued drawee is authoorised to fill in dates and deposit the cheques

2) A closer scrutiny of the ingredients of Section 20 of the Negotiable Instruments Act, 1881 unerringly points out that filling up of blank cheque is neither a case of 'Material Alteration' of the cheque nor 'Fabrication or Forgery'. An implied authority is given to the holder of the cheque, at the time of entrusting a blank cheque containing the signature of the Drawer of the cheque alone, to fill the columns therein. Based on the implied authority, if the columns are filled up mentioning the date and amount by words and figures, it would not amount to any offence much less the offence punishable under Sections 468 and 471 of the Indian Penal Code as per decision Chinthala Cheruvu V. State reported in 2007 (1) Bankmann 546.

3) no case of cheating / fraud is maintainable

4) since B is authorised to fill in details there is no harm in mentioning that these cheques were filled in by B

Ajay Sethi
Advocate, Mumbai
94725 Answers
7535 Consultations

5.0 on 5.0

1. B can very well mis-utilise the blank cheques in his possession to book the accused once again in the cheque bounce case. The accused may issue instructions to bank to stop payment on the cheques presented for payment.

2. Let the complainant fill up the cheques and get them bounced from bank and decide about issuing legal notice demanding the cheque amount on the basis of the reason that he may create as per the prevailing situation.

3. In the cheque bounce case, the accused will not be sent to jail immediately after filing the case.

A proper trial proceedings will take place in the case, both the sides will be given opportunity to be heard and the court will dcide the case on merits and the convincing arguments made by both the sides.

If the court finds the accused guilty then it may convict the accused to under imprisonment sentence.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

4] Please remember there is already trial on-going on 'A', where 'B' has already witnessed and all statements recorded infront of judge and cross-questioned as well, post this new case (Sec-139) on 'A' from 'B' can hamper or affect the ongoing case? Also it's 'B's mother who is prime-victim and lodged FIR on 'A' fo r which he is under-trial.

Since the criminal complaint before the magistrate court was on the basis of the complaint given by mother of B, that is a different case, now B can file a cheque bounce cae on the basis of the dishonored cheque in his possession.

5] Since we don't know any property owned by 'A' are unable to put Civil Suit. How we can use this blank dated cheques efficiently to cause pain to 'A' like we had suffered in past, if we have any recovery mechanism available when property/possession of 'A' is not known?

The cheque bounce criminal case shall be the best option and solution under the given situation.

6] Can lawyer of 'A' send these cheques for Forensic and any harm it's outcome can cause to 'B' or can weaken the on-going trial against 'A' party?

Sending the cheques to FSL for finding out the age of ink is just a dragging on process adopted by the advocate of the defence, hence the court may not be very serious about it, because if the signature is admitted then the accused is liable to be punished.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

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