How can I defend cheque bounce case
I was started my plywood business in 2012, & I took a dealership of a plywood company, while taking dealership, company took 2 security cheques from me, business was going very smoothly for some time. but once company sent me material more than what i ordered them,I requested them to take back the material and settle my account. but they didn't, & unfortunately I suffered loss in my business, now I am thinking to close my business and do job some where. but still I am repaying their money in a small installments but now company presented my cheque into bank and cheque was returned unpaid. And they may file case in kolkatta and I am staying in Karnataka it is difficult to handle this case for me. How can i defend myself in a court? please guide me.
Asked 4 years ago in Business Law from Gulbarga, Karnataka
you ought not to have issued security cheques . once you have signed the cheques and filled in amounts you have authorised drawee to present the cheques for payment . if your cheque has been returned un paid and legal notice issued deny your liability to make payment in reply to legal notice . contact a local lawyer . if case is filed in kolkata it would be maintanable if registered office of company is in kolkata or if as per your agreement in the vent of any disputes jurisdiction is kolkata
Issuing a security cheque by filling up the amount and name of drawee is an express authority to the drawee to present the cheque to bank for encashment. If the cheque has bounced then a legal notice will be issued to you by drawee for payment which if not made will entitle the drawee to file a case for cheque bounce against you in the court. The case can be filed at Kolkatta. You may engage a Kolkatta based lawyer for your defence. You are not required to present yourself in the court at Kolkatta at every hearing as the presence of your lawyer will suffice.
Did you received legal notice from the company? What is the amount payable by you and how much they are claiming through the cheque?
Do you have any record to show that you have given the said cheque as security for the future liability and who written the amount on the cheque?
If you have recieved the notice then send a reply of that notice with all details of your defence.
try to prove that the cheques were security then NI Act will not be attract and the complaint may be dismiss.
feel free to call
Advocate, New Delhi